https://www.taxtmi.com/caselaws?id=249269 The ITAT allowed the appeal filed by the assessee, ruling in favor of restricting the disallowance under section 14A to 2% of the dividend income, in line with a Bombay High Court judgment. The ITAT emphasized that Rule 8D was not applicable for the relevant assessment year of 2006-07, supporting the decision to limit the disallowance based on a percentage of exempt income. The decision underscored the significance of judicial precedents in determining the quantum of disallowance for expenses linked to earning exempt income. en-us Wed, 25 Jun 2014 00:00:00 +0530 Wed, 09 Jul 2014 12:41:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=249269 The ITAT allowed the appeal filed by the assessee, ruling in favor of restricting the disallowance under section 14A to 2% of the dividend income, in line with a Bombay High Court judgment. The ITAT emphasized that Rule 8D was not applicable for the relevant assessment year of 2006-07, supporting the decision to limit the disallowance based on a percentage of exempt income. The decision underscored the significance of judicial precedents in determining the quantum of disallowance for expenses linked to earning exempt income. Case-Laws Income Tax Wed, 25 Jun 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=249269