Disallowance u/s 14A cannot be more than exempt income

Sara International Private Limited Vs ACIT (ITAT Delhi) ITAT Delhi held that it is settled principle of law that the disallowance under section 14A of the Income Tax Act cannot exceed the exempt income. Facts- The assessee company is engaged in the trading of iron ore fines, cement, coal, readymade garment, etc. AO observed that the assessee had made huge investments in various quoted and unquoted shares and also paid huge interest on its borrowings. AO concluded that assessee had earned three types of exempt income i.e. Dividend claimed as exempt- Rs.5,56,500/-; Long Term Capital gain on sale...