https://www.taxtmi.com/caselaws?id=418434 Direct expenditure such as STT incurred in earning exempt income was disallowable under section 14A, but the Rule 8D(2)(ii) computation had to be restricted to investments that actually yielded exempt income during the year, so the balance disallowance was recomputed. Employees' contribution to provident fund, deposited before the due date for filing the return, remained allowable for the relevant assessment year because the Finance Act, 2021 amendment was treated as prospective. Section 14A disallowance could not be mechanically imported into section 115JB, and expenditure relatable to exempt income had to be computed independently under clause (f) of Explanation 1, so the matter was restored for fresh computation. en-us Mon, 06 Dec 2021 00:00:00 +0530 Thu, 17 Feb 2022 07:43:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=418434 Direct expenditure such as STT incurred in earning exempt income was disallowable under section 14A, but the Rule 8D(2)(ii) computation had to be restricted to investments that actually yielded exempt income during the year, so the balance disallowance was recomputed. Employees' contribution to provident fund, deposited before the due date for filing the return, remained allowable for the relevant assessment year because the Finance Act, 2021 amendment was treated as prospective. Section 14A disallowance could not be mechanically imported into section 115JB, and expenditure relatable to exempt income had to be computed independently under clause (f) of Explanation 1, so the matter was restored for fresh computation. Case-Laws Income Tax Mon, 06 Dec 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=418434