Disallowance u/s 14A against Expenses for Exempt Income, Not Taxable Income

DCIT Vs Jaypee Infra Ventures (ITAT Delhi) ITAT Delhi held that disallowance u/s 14A of the Act is made in respect of expenses attributable to exempt income and not the taxable income. Further, the disallowance u/s 14A of the Income Tax Act should not exceed the exempt income of that year. Facts- The assessee company is engaged in the business of design, engineering, software development and consultancy of real estate business. The case was selected for scrutiny assessment under CASS. Statutory notice u/s 143(2) of the Act was issued and duly served upon the assessee. AO while framing the asse...