https://www.taxtmi.com/caselaws?id=446957 ITAT Mumbai held that disallowance under Section 14A read with Rule 8D cannot exceed exempt income earned by the assessee. For AY 2016-17, interest disallowance of Rs.21,92,534 was deleted as assessee had sufficient interest-free funds (Rs.81 crores) exceeding mutual fund investments (Rs.15.60 crores). Administrative expenditure disallowance was restricted to exempt income of Rs.53,873. For AY 2017-18, AO was directed to recompute disallowance considering only investments yielding exempt income, ensuring total disallowance doesn't exceed exempt income earned. Finance Act 2022 amendments to Section 14A held prospective from April 1, 2022, following Delhi HC precedent. Appeals allowed with directions for recomputation. en-us Wed, 13 Dec 2023 00:00:00 +0530 Fri, 15 Dec 2023 10:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446957 ITAT Mumbai held that disallowance under Section 14A read with Rule 8D cannot exceed exempt income earned by the assessee. For AY 2016-17, interest disallowance of Rs.21,92,534 was deleted as assessee had sufficient interest-free funds (Rs.81 crores) exceeding mutual fund investments (Rs.15.60 crores). Administrative expenditure disallowance was restricted to exempt income of Rs.53,873. For AY 2017-18, AO was directed to recompute disallowance considering only investments yielding exempt income, ensuring total disallowance doesn't exceed exempt income earned. Finance Act 2022 amendments to Section 14A held prospective from April 1, 2022, following Delhi HC precedent. Appeals allowed with directions for recomputation. Case-Laws Income Tax Wed, 13 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446957