In absence of exempt income no disallowance under section 14A

ITO Vs Moonrock Hospitality (P) Ltd. (ITAT Delhi) It is observed from the assessee’ s Profit & Loss Account that there is only one item of expenditure of Rs.6,230/- which has been booked in the accounts and there is no exempt income earned by the assessee. We find that the question of disallowance u/s 14A when there is no exempt income is no more res integra in view of the judgment of the Hon’ble jurisdictional High Court in the case Cheminvest Ltd. vs. CIT (2015) 378 ITR 33 (Del), wherein it has been held that if there is no exempt income, there can be no question of making any di...