https://www.taxtmi.com/caselaws?id=405994 The ITAT upheld the appeal by the revenue, emphasizing the importance of actual receipt of exempt income for invoking disallowance under section 14A. The tribunal clarified the application of Rule 8D in cases involving investments yielding dividend income, stating that Rule 8D should only be applied when determining expenses related to exempt income becomes difficult. The ITAT allowed the appeal for statistical purposes, indicating that the AO could examine financials and investment sources in future years if exempt income is generated. en-us Thu, 25 Mar 2021 00:00:00 +0530 Sat, 03 Apr 2021 08:43:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=405994 The ITAT upheld the appeal by the revenue, emphasizing the importance of actual receipt of exempt income for invoking disallowance under section 14A. The tribunal clarified the application of Rule 8D in cases involving investments yielding dividend income, stating that Rule 8D should only be applied when determining expenses related to exempt income becomes difficult. The ITAT allowed the appeal for statistical purposes, indicating that the AO could examine financials and investment sources in future years if exempt income is generated. Case-Laws Income Tax Thu, 25 Mar 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=405994