Expenditure having no nexus with the earning of tax free income can not be disallowed u/s. 14A

The Ld. Counsel relied on the order of Co-ordinate Bench in the case of  Nivi Trading Ltd. Vs DCIT in ITA No. 5455/M/2010 dt. 12.10.2011 to submit that assessee does not have any other expenditure except to maintain day today activity and the expenditure has no nexus with the earning of tax free income, therefore, disallowance u/s. 14A is not warranted. The details of professional fees paid were also placed on record to submit that the expenditure was for business and not for earning exempt income. We have considered the issue. As seen from the details of the P&L account filed by assessee...