No disallowance u/s 14A in absence of exempt income

ACIT Vs  Prabhatam Advertising (P) Ltd. (All ITAT) Conclusion: Disallowance under section 14A could not be made where assessee had earned no dividend income during the year under consideration. Held: In the present case, AO noticed investments made by assessee-company and invoked section 14A leading to disallowance whereas assessee claimed that no dividend income earned during the year under consideration. It was held since assessee-company did not have any dividend income and it had strategic investment therefore no disallowance under 14A could be made. FULL TEXT OF THE ITAT JUDGEMENT This ...