No Section 14A disallowance if No Exempt Income : P&H HC

PCIT Vs M/s Trident Limited (Punjab and Haryana HC) The issue under consideration is whether the AO is correct in disallowance made u/s 14A irrespective of the fact that assessee do not have any Exempt Income during the Year? In the present case, AO noticed that assessee-company made investments in various equity funds and shares of different companies and took huge loans and was investing indirectly from the said loan funds. Accordingly, he made disallowance under section 14A. But Assessee do not have earned any exempt income during this year, not even claim anything in return filed. High Cou...