The CBDT has issued Circular No. 5 of 2014 dated 11.02.2014 in which the issue as to whether disallowance under section 14A and Rule 8D can be made in cases where the corresponding exempt income has not been earned during the financial year has been considered in great detail.
CBDT Circular No. 5 of 2014 dt. 11.02.2014 on applicability of s. 14A & Rule 8D (684.5 KiB, 27,806 hits)
why in spite of circular by CBDT AOs function irresponsibly is highlighted so there is something basically wrong in administration of tax management in country clearly indicates government does not work under constitutional basic tenets, perhaps not able to understand constitution! that way i wonder what kind of public servants we have!