https://www.taxtmi.com/caselaws?id=449186 The Tribunal partly allowed the appeal, ruling that disallowance under Rule 8D of the Income Tax Rules should be computed based only on investments generating tax-exempt income. This decision aligned with the Delhi HC's interpretation that only such investments should be considered for disallowance under section 14A. The Tribunal also determined that the Explanation to section 14A, introduced by the Finance Act 2022, should be applied prospectively, following the Delhi HC's recent decision, despite arguments for its retrospective application. The Assessing Officer was directed to adjust the disallowance calculation accordingly. en-us Mon, 05 Feb 2024 00:00:00 +0530 Tue, 06 Feb 2024 14:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449186 The Tribunal partly allowed the appeal, ruling that disallowance under Rule 8D of the Income Tax Rules should be computed based only on investments generating tax-exempt income. This decision aligned with the Delhi HC's interpretation that only such investments should be considered for disallowance under section 14A. The Tribunal also determined that the Explanation to section 14A, introduced by the Finance Act 2022, should be applied prospectively, following the Delhi HC's recent decision, despite arguments for its retrospective application. The Assessing Officer was directed to adjust the disallowance calculation accordingly. Case-Laws Income Tax Mon, 05 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449186