Disallowance under Section 14A cannot exceed exempt income: Delhi High Court

DCIT Vs Jite Shipyard Ltd (Delhi High Court) Introduction: In a recent case involving the Income Tax Appellate Tribunal, the Delhi High Court addressed a crucial issue related to the disallowance made under Section 14A of the Income-tax Act, 1961 (the Act). The appellant, the Deputy Commissioner of Income Tax (DCIT), contested the order passed by the Tribunal for the Assessment Year 2015-16. The central question before the court was whether the disallowance under Section 14A could exceed the exempt income earned by the respondent, Jite Shipyard Ltd. Detailed Analysis: The central issue present...