Section 14A disallowance applies only to investments yielding exempt income

DCIT Vs Paranjapee Schemes Construction Ltd. (ITAT Mumbai) The case of DCIT vs. Paranjapee Schemes Construction Ltd. (ITAT Mumbai) revolves around two main issues: the disallowance under section 14A and the disallowance of foreign travel expenses. Let’s delve into the details of each aspect: Disallowance under Section 14A: The assessing officer proposed a disallowance under section 14A of the Income Tax Act, relating to expenses incurred on exempt income. However, the assessee argued against this disallowance, contending that: No expenditure should be disallowed under section 14A unless...