Dismissing the appeal of the revenue the Court held that When there is no exempt income declared during the year no disallowance can be made . Followed CIT v. Delite Enterprises ITA No 110 of 2009 dt 26.2.2009 (Bom) (HC) CIT v. India Debt Management Pvt Ltd ITA No 266 of 201 dt 15.4.2019 (Bom) (HC) ( ITA No 114/Mum/2013 and Cross-objection No. 215/Mum/2015 dt 5-01 2017 . (ITA No 1701 of 2017 dt 21-1-2020) (AY.2008 -09)
PCIT v .Morgan Stanley India Securities P Ltd ( Bom) (HC) (UR)
S. 14A : Disallowance of expenditure – Exempt income – When there is no exempt income declared during the year no disallowance can be made .[ R.8D(2) (ii) ]