That the Assessing Officer had called for break-up details of long-term investments, the expenses incurred in relation to exempt income, details of availability of non-interest bearing funds. By notice under section 142(1), the Assessing Officer had called for clarification on the note given by the tax auditor on the expenses related to exempt income. The assessee replied that it had not earned any expenditure relating to exempt income. The Assessing Officer had made enquiries during the course of assessment proceedings with regard to the disallowance to be made under section 14A of the Act. Since the assessee had enough of its own funds, no disallowance out of interest expenses was called for. The order passed by the Principal Commissioner on this issue was liable to be quashed.(AY.2017-18)