Dismissing the appeal of the revenue the Court held that, disallowance cannot be made when there is no income exempt from tax. Referred Maxopp Investment Ltd v.CIT ( 2018) 402 ITR 640 (SC) (AY. 2009-10)
PCIT v. Caraf Builders and Constructions Pvt. Ltd. (2019) 414 ITR 122 / 261 Taxman 47 (Delhi) (HC) Editorail: SLP of revenue is dismissed, PCIT v. Caraf Builders and Constructions Pvt. Ltd. ( 2020) 268 Taxman 317 (SC)
S. 14A : Disallowance of expenditure-Exempt income–Disallowance cannot be made when there is no income exempt from tax. [R. 8D]