https://www.taxtmi.com/caselaws?id=330684 Rule 8D cannot be applied for assessment year 2006-07 because it came into force only on 24.03.2008; disallowance under section 14A for that year must be made on a reasonable estimate, and the expenditure was restricted to 2% of exempt income. A provision for claims and compensation shown as a security deposit, without actual write-off in the accounts, does not qualify as a deductible bad debt and also was not accepted as a trading loss. Difference arising on assignment and later encashment of a keyman insurance policy remains taxable where the transaction is used as a colourable device to avoid tax. en-us Fri, 15 Jul 2016 00:00:00 +0530 Mon, 01 Aug 2016 18:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=330684 Rule 8D cannot be applied for assessment year 2006-07 because it came into force only on 24.03.2008; disallowance under section 14A for that year must be made on a reasonable estimate, and the expenditure was restricted to 2% of exempt income. A provision for claims and compensation shown as a security deposit, without actual write-off in the accounts, does not qualify as a deductible bad debt and also was not accepted as a trading loss. Difference arising on assignment and later encashment of a keyman insurance policy remains taxable where the transaction is used as a colourable device to avoid tax. Case-Laws Income Tax Fri, 15 Jul 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=330684