Section 14A disallowance cannot exceed amount of exempt Income

Brindavan Beverages Pvt.Ltd. Vs Dcit (ITAT Banglore) The issue under consideration is whether the disallowance u/s 14A can exceed the amount of exempt income? ITAT states that, the primary contention of the assessee before the first appellate authority was that no disallowance u/s 14A of the I.T.Act is required since the assessee has not incurred any expenditure to earn the exempt income. Secondly, it was contended before the first appellate authority that disallowance u/s 14A of the I.T.Act cannot exceed the amount of exempt income earned by the assessee for the relevant assessment years. The...