https://www.taxtmi.com/caselaws?id=754189 ITAT Mumbai held that disallowance under section 14A read with rule 8D was not sustainable where the assessee earned no exempt income during the year, because the provision applies only to expenditure incurred in relation to exempt income actually earned and cannot be extended to notional income. On the same facts, the adjustment to book profit under section 115JB also failed, as clause (f) of Explanation 1 covers only expenditure relatable to exempt income debited to the profit and loss account. Both the normal computation adjustment and the MAT adjustment were deleted. en-us Wed, 03 Jan 2024 00:00:00 +0530 Wed, 19 Jun 2024 08:32:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754189 ITAT Mumbai held that disallowance under section 14A read with rule 8D was not sustainable where the assessee earned no exempt income during the year, because the provision applies only to expenditure incurred in relation to exempt income actually earned and cannot be extended to notional income. On the same facts, the adjustment to book profit under section 115JB also failed, as clause (f) of Explanation 1 covers only expenditure relatable to exempt income debited to the profit and loss account. Both the normal computation adjustment and the MAT adjustment were deleted. Case-Laws Income Tax Wed, 03 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754189