https://www.taxtmi.com/caselaws?id=449540 ITAT Mumbai ruled in favor of the assessee regarding disallowance under section 14A read with rule 8D. The tribunal held that where the assessee has sufficient interest-free funds (share capital and reserves) exceeding the investment amount yielding tax-free income, no disallowance under rule 8D(2)(ii) is warranted. For administrative expenses under rule 8D(2)(iii), only investments actually yielding exempt income during the year should be considered. The tribunal also confirmed that section 14A disallowance cannot exceed exempt income earned and such disallowance applies to MAT computation under section 115JB. The assessing officer was directed to delete the disallowance. en-us Mon, 22 Jan 2024 00:00:00 +0530 Fri, 10 Jul 2026 11:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449540 ITAT Mumbai ruled in favor of the assessee regarding disallowance under section 14A read with rule 8D. The tribunal held that where the assessee has sufficient interest-free funds (share capital and reserves) exceeding the investment amount yielding tax-free income, no disallowance under rule 8D(2)(ii) is warranted. For administrative expenses under rule 8D(2)(iii), only investments actually yielding exempt income during the year should be considered. The tribunal also confirmed that section 14A disallowance cannot exceed exempt income earned and such disallowance applies to MAT computation under section 115JB. The assessing officer was directed to delete the disallowance. Case-Laws Income Tax Mon, 22 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449540