https://www.taxtmi.com/caselaws?id=338073 In computing disallowance under section 14A read with Rule 8D(2)(ii), the Tribunal held that, where interest income and interest expenditure are both present, the relevant interest component must be taken on a net basis and the resulting disallowance cannot exceed exempt income; the Assessing Officer was directed to recompute accordingly. On book-profit computation under section 115JB, it further held that exempt dividend income credited in the profit and loss account must be reduced under Explanation 1, and the section 14A disallowance could not be mechanically added back in the facts of the case. Both issues were decided in favour of the assessee. en-us Fri, 13 Jan 2017 00:00:00 +0530 Tue, 24 Jan 2017 08:36:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=338073 In computing disallowance under section 14A read with Rule 8D(2)(ii), the Tribunal held that, where interest income and interest expenditure are both present, the relevant interest component must be taken on a net basis and the resulting disallowance cannot exceed exempt income; the Assessing Officer was directed to recompute accordingly. On book-profit computation under section 115JB, it further held that exempt dividend income credited in the profit and loss account must be reduced under Explanation 1, and the section 14A disallowance could not be mechanically added back in the facts of the case. Both issues were decided in favour of the assessee. Case-Laws Income Tax Fri, 13 Jan 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=338073