Assessee had earned long-term capital gain on shares during year which was claimed as exempt under S. 10(38) of the Act. However, no expenditure in relation to exempt income had been disallowed. AO disallowed expenditure. Tribunal up held the disallowances made by the AO. (AY. 2011-12 to 2014-15).
Doon Valley Foods (P.) Ltd. v. ITO (2020) 181 ITD 18 (Chd.) (Trib.)
S. 14A : Disallowance of expenditure-Exempt income-Long term capital gains–AO is justified in making disallowance. [S. 10(38), R. 8D]