https://www.taxtmi.com/caselaws?id=310817 ITAT Mumbai partially allowed the appeal. The AO properly recorded satisfaction before invoking Rule 8D for section 14A disallowance, but must consider only dividend-yielding investments for computation. Interest on Perpetual Non-Convertible Debentures was held allowable under section 36(1)(iii) based on precedent. Compensatory Afforestation Fund contribution was deemed allowable expenditure. Book profit computation under section 115JB should exclude section 14A disallowance. Additional claim for PNCD interest deduction was restored to AO for fresh consideration. AO was directed to expeditiously decide pending TDS/TCS credit application. Leave encashment deduction was allowed for actual payments made before return filing due date. en-us Mon, 20 Feb 2023 00:00:00 +0530 Sun, 19 Nov 2023 17:43:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=310817 ITAT Mumbai partially allowed the appeal. The AO properly recorded satisfaction before invoking Rule 8D for section 14A disallowance, but must consider only dividend-yielding investments for computation. Interest on Perpetual Non-Convertible Debentures was held allowable under section 36(1)(iii) based on precedent. Compensatory Afforestation Fund contribution was deemed allowable expenditure. Book profit computation under section 115JB should exclude section 14A disallowance. Additional claim for PNCD interest deduction was restored to AO for fresh consideration. AO was directed to expeditiously decide pending TDS/TCS credit application. Leave encashment deduction was allowed for actual payments made before return filing due date. Case-Laws Income Tax Mon, 20 Feb 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=310817