https://www.taxtmi.com/caselaws?id=412745 For deduction under section 80IC, common administrative expenses may be allocated on a turnover basis where that method is shown to be fair and reasonable for computing eligible profits, and the net profit ratio approach is not preferred absent reliable material showing distortion. On section 14A read with Rule 8D, a disallowance cannot be properly examined without complete factual material on exempt income and the basis for the adjustment; where the record is incomplete, the matter requires fresh consideration after hearing the assessee. The note therefore highlights turnover-based expense allocation for eligible-unit profit computation and the need for adequate facts before applying section 14A disallowance. en-us Wed, 22 Sep 2021 00:00:00 +0530 Fri, 24 Sep 2021 11:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=412745 For deduction under section 80IC, common administrative expenses may be allocated on a turnover basis where that method is shown to be fair and reasonable for computing eligible profits, and the net profit ratio approach is not preferred absent reliable material showing distortion. On section 14A read with Rule 8D, a disallowance cannot be properly examined without complete factual material on exempt income and the basis for the adjustment; where the record is incomplete, the matter requires fresh consideration after hearing the assessee. The note therefore highlights turnover-based expense allocation for eligible-unit profit computation and the need for adequate facts before applying section 14A disallowance. Case-Laws Income Tax Wed, 22 Sep 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=412745