https://www.taxtmi.com/caselaws?id=310296 Interest disallowance under section 14A read with Rule 8D(2)(ii) is not justified where an assessee's own funds exceed the investments generating exempt income and no direct nexus with borrowed funds is shown. Administrative disallowance under Rule 8D(2)(iii) is to be restricted to investments that actually yielded exempt income, with recomputation on that basis. For deductions under sections 80IA and 10B, only common expenditure having a direct nexus with the eligible undertaking may be allocated: managing director remuneration and audit expense related to the undertaking may be allocated, while non-executive directors' remuneration lacking operational nexus is not. Prior period expenses are deductible in the year the liability crystallises. en-us Tue, 21 Aug 2018 00:00:00 +0530 Wed, 18 Oct 2023 05:30:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=310296 Interest disallowance under section 14A read with Rule 8D(2)(ii) is not justified where an assessee's own funds exceed the investments generating exempt income and no direct nexus with borrowed funds is shown. Administrative disallowance under Rule 8D(2)(iii) is to be restricted to investments that actually yielded exempt income, with recomputation on that basis. For deductions under sections 80IA and 10B, only common expenditure having a direct nexus with the eligible undertaking may be allocated: managing director remuneration and audit expense related to the undertaking may be allocated, while non-executive directors' remuneration lacking operational nexus is not. Prior period expenses are deductible in the year the liability crystallises. Case-Laws Income Tax Tue, 21 Aug 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=310296