Tribunal held that disallowance cannot exceed the exempt income. On facts the assessee has suo motu disallowed an amount of Rs 135, 183 against dividend income of Rs 6 13, 133 , further disallowance of Rs 5,09 728 made by the AO was directed to be deleted . ( AY.2012-13)
Magic Share Traders Ltd. DCIT (2019) 174 ITD 230 (Ahd) (Trib.)
S. 14A : Disallowance of expenditure – Exempt income – Disallowance cannot exceed the exempt dividend [ R.8D ]