No Dis allowance U/s. 14A if no exempt income earned during the year

DCIT Vs. Aksh Optifibre Ltd. (ITAT Delhi)

Section 14A of the Act provides that for the purposes of computing the total income under the Chapter, no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of the total income under the Act. Hence, what Section 14A provides is that if there is any income which does not form part of the income under the Act, the expenditure which is incurred for earning the income is not an allowable deduction. F

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