Held that the disallowance under section 14A cannot exceed exempt income and in view of the fact that the disallowance made under section 14A read with rule 8D was much in excess of the exempt income, the Assessing Officer was to restrict the disallowance under section 14A read with rule 8D to the extent of exempt income earned by the assessee. (AY. 2013-14, 2014-15)
Hero Corporate Service Pvt. Ltd. v Dy. CIT (2023)101 ITR 77 (SN)(Delhi) (Trib)
S. 14A : Disallowance of expenditure-Exempt income-Disallowance cannot exceed exempt income-AO is directed to restrict disallowance accordingly. [R. 8D]