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) ]