TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether disallowance under section 14A of the Income-tax Act, 1961 could exceed the exempt income earned by the assessee.
Analysis: The assessee had earned exempt income of Rs 3,502 and had made a suo motu disallowance. The Assessing Officer nevertheless applied Rule 8D and determined a higher disallowance. The Tribunal followed the settled principle that section 14A disallowance is restricted by the amount of exempt income and cannot be computed in excess of it.
Conclusion: The disallowance under section 14A was restricted to the exempt income of Rs 3,502, and the issue was decided in favour of the assessee.
Ratio Decidendi: Disallowance under section 14A of the Income-tax Act, 1961 cannot exceed the exempt income earned during the relevant year.
TaxTMI 
TaxTMI 
