No Exempt Income = No U/s 14A Disallowance – ITAT Bangalore Reaffirms Settled Law

Emmvee Photovoltaic Power Limited Vs ITO (ITAT Bangalore) No Exempt Income = No U/s 14A Disallowance – ITAT Bangalore Reaffirms Settled Law The Bangalore ITAT deleted the disallowance of ₹34.64 lakh made under Section 14A r.w. Rule 8D, holding that in the absence of exempt income, no disallowance can be made. The AO had invoked Section 14A merely because the assessee had made investments in subsidiaries capable of yielding exempt income, even though no exempt income was actually earned during the year. The CIT(A) upheld the disallowance relying on CBDT Circular No. 5/2014. However, the...