Disallowance u/s. 14A cannot exceed amount of exempt income earned during the year

Tata Industries Ltd Vs ACIT (ITAT Mumbai) ITAT Mumbai held that disallowance under section 14A of the Income Tax Act cannot exceed the amount of exempt income earned by the assessee during the year under consideration. Accordingly, the matter is restored back to file of AO for exercising the computation of disallowance u/s 14A. Facts- AO disallowed an amount of Rs. 57.37 crores by invoking provisions of section 14A r.w. rule 8D(2)(i), (ii) & (iii). The aggregate disallowance of Rs. 57.37 crores is reduced by Rs.29.92 crores, which was suo-moto disallowed by the assessee itself in its Retu...