Provisions of section 14A r.w.r. 8D cannot be invoked in absence of any exempt income

DCIT Vs Archana Ajay Mittal (ITAT Mumbai) ITAT Mumbai held that provisions of section 14A r.w.s. 8D of the Income Tax Rules not invocable as assessee has not earned any exempt income during the year. Accordingly, disallowance duly deleted by CIT(A). Facts- The assessee is a partner in the partnership firm and derives income from other sources and claimed exemption of share of profit from the partnership firm under Section 10(2A) of Act. The case was selected for scrutiny under CASS, and notices u/s. 143(2) and 142(1) of the Act are issued. AO on perusal of financial statements found that the a...