Dismissing the appeal of the revenue the Tribunal held that; when there is no exempt income, no disallowance can be made. Followed CIT v. Corrtech Energy (P.) Ltd. (2015 372 ITR 97 (Guj.) (HC). (AY. 2012-13)
DCIT v. Mc Fills Enterprise (P.) Ltd. (2019) 174 ITD 667 (Ahd) (Trib.)
S. 14A : Disallowance of expenditure-Exempt income–When there is no exempt income, no disallowance can be made. [R. 8D]