https://www.taxtmi.com/caselaws?id=753748 ITAT Mumbai upheld CIT(A)'s deletion of disallowance under Section 14A r.w. Rule 8D, finding AO incorrectly treated indirect expenses as direct expenses and failed to identify actual direct expenses related to exempt income. Court accepted assessee's suo motu disallowance computation based on tax auditor's report. Additional ground regarding exchange rate variation loss on foreign loans was remanded to AO for factual verification. CIT(A)'s decisions on inventory valuation, book profits under Section 115JB, and acceptance of revised return were upheld. Leave encashment provision issue was remanded with directions to allow deduction if assessee establishes payment correspondence. en-us Tue, 16 Jan 2024 00:00:00 +0530 Sat, 08 Jun 2024 11:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753748 ITAT Mumbai upheld CIT(A)'s deletion of disallowance under Section 14A r.w. Rule 8D, finding AO incorrectly treated indirect expenses as direct expenses and failed to identify actual direct expenses related to exempt income. Court accepted assessee's suo motu disallowance computation based on tax auditor's report. Additional ground regarding exchange rate variation loss on foreign loans was remanded to AO for factual verification. CIT(A)'s decisions on inventory valuation, book profits under Section 115JB, and acceptance of revised return were upheld. Leave encashment provision issue was remanded with directions to allow deduction if assessee establishes payment correspondence. Case-Laws Income Tax Tue, 16 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753748