Section 14A Disallowance unsustainable in absence of exempt income

UKN Properties Pvt. Ltd Vs DCIT (ITAT Bangalore) ITAT Bangalore held that no disallowance under section 14A of the Income Tax Act could be made if no exempt income was earned by the assessee. Facts- During the assessment proceedings, the AO noticed that the assessee has made huge investments in the equity shares of various concerns. The AO invoked the provisions of section 14A and called for details from the assessee. The assessee submitted that no expenditure relatable to exempt income was debited to the P&L Account and that the company has advanced money out of non-interest funds and hen...