https://www.taxtmi.com/caselaws?id=371641 The dominant issue was the quantum of disallowance under s.14A read with r.8D. Applying SC and HC precedent, the HC held that the disallowance cannot exceed the exempt income of the relevant year; since exempt income was about Rs. 19 lakhs, the Revenue's plea to enhance disallowance from about Rs. 75.89 crores to about Rs. 144.52 crores was rejected. On computation under r.8D(2)(ii), the HC held the AO erred by adopting the total value of investments for "B"; only the average value of investments whose income does not form part of total income can be used, consistent with prior HC authority. en-us Tue, 13 Nov 2018 00:00:00 +0530 Mon, 05 Jan 2026 12:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=371641 The dominant issue was the quantum of disallowance under s.14A read with r.8D. Applying SC and HC precedent, the HC held that the disallowance cannot exceed the exempt income of the relevant year; since exempt income was about Rs. 19 lakhs, the Revenue's plea to enhance disallowance from about Rs. 75.89 crores to about Rs. 144.52 crores was rejected. On computation under r.8D(2)(ii), the HC held the AO erred by adopting the total value of investments for "B"; only the average value of investments whose income does not form part of total income can be used, consistent with prior HC authority. Case-Laws Income Tax Tue, 13 Nov 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=371641