Disallowance under section 14A cannot exceed exempt income

DLF Universal Ltd Vs DCIT (ITAT Delhi) Ld AO has applied 0.5% of investment of Rs. 53.51 crores whereas the ld CIT(A) restricting 0.5% only Rs. 30.84 holding that balance investment of approximately Rs. 22 crores was made in the subsidiary companies and there was no intention of earning any dividend income. The ld CIT(A) while holding so relied upon the decision of the Chennai Bench in case of EIH Associated Hotels Vs. Dy. CIT ITA No. 1503/Mds/2012 dated 27.05.2013 and also of Delhi bench in Pioneer Radio Trading Services Vs. Department of Income Tax in ITA No. 4448/Del/2013 dated 19.01.2015. ...