https://www.taxtmi.com/caselaws?id=312258 ITAT Mumbai held that assessee under tonnage tax scheme cannot face disallowance u/s 14A despite earning exempt dividend income. AO incorrectly apportioned interest expenditure including tonnage tax business expenses for Rule 8D computation. Tribunal directed no disallowance from tonnage tax income computation and no interest disallowance where own funds exceed investment value. For transfer pricing, assessee's suo-moto adjustment of 0.55% for financial guarantees was accepted as appropriate using CUP method. Bad debts written back and insurance claims from pre-tonnage tax period held non-taxable. Forfeiture of convertible warrants treated as capital receipt following SC precedent in Mahindra case. en-us Wed, 13 Sep 2023 00:00:00 +0530 Thu, 08 Feb 2024 18:14:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=312258 ITAT Mumbai held that assessee under tonnage tax scheme cannot face disallowance u/s 14A despite earning exempt dividend income. AO incorrectly apportioned interest expenditure including tonnage tax business expenses for Rule 8D computation. Tribunal directed no disallowance from tonnage tax income computation and no interest disallowance where own funds exceed investment value. For transfer pricing, assessee's suo-moto adjustment of 0.55% for financial guarantees was accepted as appropriate using CUP method. Bad debts written back and insurance claims from pre-tonnage tax period held non-taxable. Forfeiture of convertible warrants treated as capital receipt following SC precedent in Mahindra case. Case-Laws Income Tax Wed, 13 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=312258