The nod was yanked after the song's composer, Bruce Broughton, a former governor and current academy music branch executive committee member, emailed members of the branch to draw their attention to his submission during the nominations voting period. The song appeared in the film of the same name.
"No matter how well-intentioned the communication, using one's position as a former governor and current executive committee member to personally promote one's own Oscar submission creates the appearance of an unfair advantage," Academy President Cheryl Boone Isaacs said in a statement Wednesday.
"I'm devastated," Broughton told Variety. "I indulged in the simplest, lamest, grassroots campaign and it went against me when the song started getting attention. I got taken down by competition that had months of promotion and advertising behind them."
A replacement nominee will not be named in the category.
Shortlisted for the prize are "Happy" from "Despicable Me 2," "Let It Go" from "Frozen," "The Moon Song" from "Her" and "Ordinary Love" from "Mandela: Long Walk to Freedom."