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

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