https://www.taxtmi.com/caselaws?id=221197 Share application money, when genuinely pending allotment, is not an investment or asset capable of yielding exempt income and therefore cannot form part of the investment base for rule 8D computation under section 14A. Disallowance under section 14A read with rule 8D remains applicable where exempt dividend income is earned, but the computation must exclude share application money if its character is established on verification. The Assessing Officer must recompute the disallowance after factual examination and pass a speaking order after hearing the assessee. en-us Wed, 16 Jan 2013 00:00:00 +0530 Wed, 27 Feb 2013 06:24:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=221197 Share application money, when genuinely pending allotment, is not an investment or asset capable of yielding exempt income and therefore cannot form part of the investment base for rule 8D computation under section 14A. Disallowance under section 14A read with rule 8D remains applicable where exempt dividend income is earned, but the computation must exclude share application money if its character is established on verification. The Assessing Officer must recompute the disallowance after factual examination and pass a speaking order after hearing the assessee. Case-Laws Income Tax Wed, 16 Jan 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=221197