No Section 14A disallowance if Assessee not used borrowed fund to make investment

Motilal Chunilal & Muktalal Shaw (HUF) & Ors. Vs Asstt. CIT (ITAT Kolkata) The question raised in appeal is challenging the action of CIT(A) in confirming the addition made on account of Section 14(A) r.w.s. 8D(2)(ii)&(iii) of the Rules.. The assessee earned dividend of Rs. 52,012/- and claimed the same as exempt income. The AO by invoking Rule 8D(ii) and (iii) disallowed an amount of Rs. 24,152/- and added to the said disallowance to the total income of the assessee. The CIT(A) by placing reliance on the Circular no. 5/114 dated 11.12.2014 held that the expenses which are related ...