If exempt income is Nil, section 14A will not apply

Nekkanti Sea Foods Ltd Vs CIT (ITAT Hyderabad)

It is settled position of law that the provisions of section 14A can be applied to quantify the expenses in relation to exempt income.

Since the exempt income is Nil, section 14A will not apply. The Rule 8D can be applied only when there is difficulty in finding the expenditure relating to exempt income. The provisions of section 14A and Rule 8D will not apply to the present case.

FULL TEXT OF THE ITAT JUDGMENT