ITAT restricts Section 14A Disallowance to the extent of exempt income

DCIT Vs DLF Universal Ltd. (ITAT Delhi) Conclusion: Disallowance u/s 14A got restricted to the extent of exempt income, even if the provisions of the section 14A were attracted. Held:  Assessee was engaged in carrying out the business of real estate development. AO made addition/disallowance of Rs. 2,53,10,424/- u/s. 14A read with Rule 8D. Assessee company had itself offered for assessing a sum on account of direct expenses attributable to earning of tax free dividend income of Rs.4,30,621/-. It was held that in the case Cheminvest Ltd. vs. CIT (2015) 378 ITR 33 (Del) if there was no exempt i...