https://www.taxtmi.com/caselaws?id=761505 ITAT Mumbai ruled in favor of the assessee on two issues. For disallowance under Section 14A, the tribunal upheld CIT(A)'s decision that only investments yielding exempt income should be considered for computing average investment value under Rule 8D, following precedents from Vireet Investments and Nirved Traders cases. The disallowance cannot exceed exempt income earned. Regarding penal charges paid to National Housing Bank for non-compliance violations, the tribunal confirmed these were allowable business expenditures as they were incidental to business operations and not criminal offences. en-us Thu, 24 Oct 2024 00:00:00 +0530 Mon, 11 Nov 2024 10:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=761505 ITAT Mumbai ruled in favor of the assessee on two issues. For disallowance under Section 14A, the tribunal upheld CIT(A)'s decision that only investments yielding exempt income should be considered for computing average investment value under Rule 8D, following precedents from Vireet Investments and Nirved Traders cases. The disallowance cannot exceed exempt income earned. Regarding penal charges paid to National Housing Bank for non-compliance violations, the tribunal confirmed these were allowable business expenditures as they were incidental to business operations and not criminal offences. Case-Laws Income Tax Thu, 24 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=761505