No disallowance can be made if no exempt income is earned. Followed CIT v. IL&FS Energy Development Corporation Ltd.(2017 ) 297 CTR 452 ( Delhi) and Redington (India) P. Ltd. v. CIT (2016) 97 CCH 219 (Mad) ( HC) which also considers the Circular No. 05/2014 dt. 11.02.2014(2014) 361 ITR 94 (St). ((ITA Nos. 30 to 32/Coch/2016 dt. 23.11.2017) (AY. 2009-10 to 2011-12)
HLL Lifecare Limited v. ACIT (2018) 191 TTJ 1 (UO) / 66 ITR 361 (Cochin) (Trib.
S. 14A : Disallowance of expenditure – Exempt income – No disallowance can be made if no exempt income is earned. [R.8D ]