AO Properly Disallowed Expenditure u/s 14A and Rule 8D; CIT(A) Erred in Removing Disallowance.

AO Properly Disallowed Expenditure u/s 14A and Rule 8D; CIT(A) Erred in Removing Disallowance. https://www.taxtmi.com/highlights?id=79183 Exemption u/s 14A read with Rule 8D - disallowance of expenditure attributable to exempt income from partnership firm profits - correctly invoked by AO after recording dissatisfaction, as per Supreme Court ruling in Maxopp Investment Ltd. AO's computation u/r 8D(2) based on assessee's accounts is consonant with IT (14th Amendment) Rules, 2016, applicable from 02.06.2016 for AY 2017-18. CIT(A) erred in deleting disallowance. MAT adjustment u/s 115JB for disallowance u/s 14A - CIT(A) partly correct in not requiring adjustment in book profit for MAT liability, following ITAT Special Bench decisions in Vireet and Radha Madhav cases. en-us Sat, 06 Jul 2024 08:20:04 +0530 Sat, 06 Jul 2024 08:20:04 +0530 TaxTMI RSS Generator AO Properly Disallowed Expenditure u/s 14A and Rule 8D; CIT(A) Erred in Removing Disallowance. https://www.taxtmi.com/highlights?id=79183 Exemption u/s 14A read with Rule 8D - disallowance of expenditure attributable to exempt income from partnership firm profits - correctly invoked by AO after recording dissatisfaction, as per Supreme Court ruling in Maxopp Investment Ltd. AO's computation u/r 8D(2) based on assessee's accounts is consonant with IT (14th Amendment) Rules, 2016, applicable from 02.06.2016 for AY 2017-18. CIT(A) erred in deleting disallowance. MAT adjustment u/s 115JB for disallowance u/s 14A - CIT(A) partly correct in not requiring adjustment in book profit for MAT liability, following ITAT Special Bench decisions in Vireet and Radha Madhav cases. Highlights Income Tax Sat, 06 Jul 2024 08:20:04 +0530 https://www.taxtmi.com/highlights?id=79183