INCOME TAX ACT, 1961

Sedction 14A

Disallowance under section 14A - Expenditure against exempt income - Suo motu disallowance more than exempt income -

Revenue filed appeal against the order of CIT(A) restricting the disallowance under section 14(A) being the suo motu disallowance done by assessee itself.Held: CIT(A) had referred the case of Joint Investment (P) Ltd. v. CIT ((2015) 59 Taxmann.com 295 (Del) : 2015 TaxPub(DT) 1375 (Del-HC) and correctly held that for the proposition that disallowance under section 14A cannot exceed the exempt income. In this view of the matter, as held that the disallowance in this case will not exceed the suo motu disallowance done by the assessee which was more than the exempt income.