https://www.taxtmi.com/caselaws?id=285836 The appeal against the adhoc disallowance of indirect expenses at Rs. 50,000 under Rule 8D was made for the assessment year 2007-08 under the IT Act. The main issue was the disallowance of expenses related to earning exempt income. The CIT(A) upheld the disallowance at Rs. 50,000, stating Rule 8D was not applicable to the year under appeal. The Bombay High Court upheld the constitutional validity of section 14A(2) & (3) and Rule 8D, clarifying its prospective application from 01.04.2007. The disallowance of Rs. 50,000 was upheld, leading to the dismissal of the assessee's appeal. en-us Tue, 21 Jun 2011 00:00:00 +0530 Wed, 29 Jan 2020 15:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=285836 The appeal against the adhoc disallowance of indirect expenses at Rs. 50,000 under Rule 8D was made for the assessment year 2007-08 under the IT Act. The main issue was the disallowance of expenses related to earning exempt income. The CIT(A) upheld the disallowance at Rs. 50,000, stating Rule 8D was not applicable to the year under appeal. The Bombay High Court upheld the constitutional validity of section 14A(2) & (3) and Rule 8D, clarifying its prospective application from 01.04.2007. The disallowance of Rs. 50,000 was upheld, leading to the dismissal of the assessee's appeal. Case-Laws Income Tax Tue, 21 Jun 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=285836