Disallowances u/s.14A cannot exceed amount of exempt income

Hyundai Motor India Ltd Vs ACIT (ITAT Chennai)

Conclusion: Disallowances u/s.14A could not exceed amount of exempt income, therefore, AO was directed to restrict disallowances u/s.14A to the extent of exempt income earned for the impugned assessment year.

Held:  During the year under consideration, assessee had earned dividend income from mutual funds, which was exempt from tax amounting to Rs.57,826/-, however, did not made any suo-motu disallowance of e

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