https://www.taxtmi.com/caselaws?id=407472 ITAT Mumbai noted that where the assessee had sufficient interest-free funds and reserves exceeding investments yielding exempt income, interest disallowance under Rule 8D(2)(ii) was not justified, and the administrative component under Rule 8D(2)(iii) had to be computed only on investments that actually yielded exempt income. Replacement of old electricity meters was treated as allowable revenue expenditure on the basis of earlier years' findings. Head office expenses were not to be apportioned against eligible profits for section 80IA, and the deduction was to be computed with reference to gross total income, not merely business income. For section 115JB, further disallowance under section 14A could not be made mechanically by applying Rule 8D; only actual exempt-income-related expenditure was relevant. en-us Tue, 27 Apr 2021 00:00:00 +0530 Tue, 11 May 2021 15:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=407472 ITAT Mumbai noted that where the assessee had sufficient interest-free funds and reserves exceeding investments yielding exempt income, interest disallowance under Rule 8D(2)(ii) was not justified, and the administrative component under Rule 8D(2)(iii) had to be computed only on investments that actually yielded exempt income. Replacement of old electricity meters was treated as allowable revenue expenditure on the basis of earlier years' findings. Head office expenses were not to be apportioned against eligible profits for section 80IA, and the deduction was to be computed with reference to gross total income, not merely business income. For section 115JB, further disallowance under section 14A could not be made mechanically by applying Rule 8D; only actual exempt-income-related expenditure was relevant. Case-Laws Income Tax Tue, 27 Apr 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=407472