https://www.taxtmi.com/caselaws?id=773368 ITAT Delhi held that disallowance under section 14A read with rule 8D applies only when assessee has actually earned exempt income. The assessee earned dividend income of Rs. 210.4 crores from investments of Rs. 2437.37 crores out of total investments of Rs. 26400.88 crores. AO recorded dissatisfaction with suo-moto disallowance made by assessee. Following precedents in Vireet Investments and Crago Motors, ITAT directed AO to recompute disallowance under rule 8D(2)(ii) considering only investments that yielded exempt income, not total investments. Appeal partly allowed. en-us Wed, 18 Jun 2025 00:00:00 +0530 Sat, 21 Jun 2025 08:29:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=773368 ITAT Delhi held that disallowance under section 14A read with rule 8D applies only when assessee has actually earned exempt income. The assessee earned dividend income of Rs. 210.4 crores from investments of Rs. 2437.37 crores out of total investments of Rs. 26400.88 crores. AO recorded dissatisfaction with suo-moto disallowance made by assessee. Following precedents in Vireet Investments and Crago Motors, ITAT directed AO to recompute disallowance under rule 8D(2)(ii) considering only investments that yielded exempt income, not total investments. Appeal partly allowed. Case-Laws Income Tax Wed, 18 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=773368