https://www.taxtmi.com/caselaws?id=395773 The ITAT ruled that the disallowance under Section 14A should be limited to the exempt income of Rs. 2,000. The disallowance under Section 40A(3) was not contested. Regarding the sales tax subsidy under the PSI, 2007 Scheme, the ITAT upheld it as a capital receipt, not taxable, but remanded the issue of reducing the subsidy from the cost of acquisition of fixed assets back to the AO for further examination. Consequently, the Revenue's appeal was dismissed, and the assessee's appeal was partly allowed for statistical purposes. en-us Fri, 20 Sep 2019 00:00:00 +0530 Wed, 06 Nov 2024 11:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=395773 The ITAT ruled that the disallowance under Section 14A should be limited to the exempt income of Rs. 2,000. The disallowance under Section 40A(3) was not contested. Regarding the sales tax subsidy under the PSI, 2007 Scheme, the ITAT upheld it as a capital receipt, not taxable, but remanded the issue of reducing the subsidy from the cost of acquisition of fixed assets back to the AO for further examination. Consequently, the Revenue's appeal was dismissed, and the assessee's appeal was partly allowed for statistical purposes. Case-Laws Income Tax Fri, 20 Sep 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=395773