https://www.taxtmi.com/caselaws?id=462505 ITAT Mumbai ruled in favor of the assessee on multiple grounds. The AO's disallowance under Section 14A read with Rule 8D was deleted as the AO failed to record satisfaction regarding the incorrectness of the assessee's claim about expenditure related to exempt income, violating statutory mandate. The tribunal restricted disallowance to the suo-moto amount claimed by the assessee. Regarding subsidy receipts under New Sugar Industry Promotion Policy 2004, the tribunal held these were capital in nature following precedent from AY 2007-08. The foreign exchange fluctuation issue was remitted back to AO for fresh examination considering SC precedent in Sutlej Cotton Company case. en-us Fri, 03 May 2024 00:00:00 +0530 Fri, 27 Jun 2025 08:36:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462505 ITAT Mumbai ruled in favor of the assessee on multiple grounds. The AO's disallowance under Section 14A read with Rule 8D was deleted as the AO failed to record satisfaction regarding the incorrectness of the assessee's claim about expenditure related to exempt income, violating statutory mandate. The tribunal restricted disallowance to the suo-moto amount claimed by the assessee. Regarding subsidy receipts under New Sugar Industry Promotion Policy 2004, the tribunal held these were capital in nature following precedent from AY 2007-08. The foreign exchange fluctuation issue was remitted back to AO for fresh examination considering SC precedent in Sutlej Cotton Company case. Case-Laws Income Tax Fri, 03 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462505