https://www.taxtmi.com/caselaws?id=253088 Rule 8D was held inapplicable for assessment year 2005-06, so any disallowance linked to exempt dividend income had to be computed only on a reasonable basis under section 14A, having regard to the facts and movement of funds. The write-off of inter-corporate deposits and accrued interest was also examined as a possible bad debt claim, but the record required verification of whether the advances were made in the ordinary course of a lending business and whether the assessee's non-banking finance status affected the deduction. The bad debt issue was therefore remanded for fresh examination of the nature of the advance and the applicable deduction provisions. en-us Wed, 12 Nov 2014 00:00:00 +0530 Fri, 14 Nov 2014 06:21:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=253088 Rule 8D was held inapplicable for assessment year 2005-06, so any disallowance linked to exempt dividend income had to be computed only on a reasonable basis under section 14A, having regard to the facts and movement of funds. The write-off of inter-corporate deposits and accrued interest was also examined as a possible bad debt claim, but the record required verification of whether the advances were made in the ordinary course of a lending business and whether the assessee's non-banking finance status affected the deduction. The bad debt issue was therefore remanded for fresh examination of the nature of the advance and the applicable deduction provisions. Case-Laws Income Tax Wed, 12 Nov 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=253088