https://www.taxtmi.com/caselaws?id=774986 Disallowance under section 14A read with Rule 8D(2)(ii) was sustained under the normal provisions because the assessee had not demonstrated that no expenditure was incurred in relation to exempt dividend income, and separate accounts for investment activity were not maintained. The same disallowance could not be mechanically added back while computing book profits under section 115JB, so the MAT adjustment was deleted. The principle applied is that Rule 8D can govern the computation of expenditure attributable to exempt income where the factual basis exists, but section 14A disallowance is not automatically reflected in book profit computation. en-us Tue, 15 Jul 2025 00:00:00 +0530 Thu, 17 Jul 2025 08:19:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774986 Disallowance under section 14A read with Rule 8D(2)(ii) was sustained under the normal provisions because the assessee had not demonstrated that no expenditure was incurred in relation to exempt dividend income, and separate accounts for investment activity were not maintained. The same disallowance could not be mechanically added back while computing book profits under section 115JB, so the MAT adjustment was deleted. The principle applied is that Rule 8D can govern the computation of expenditure attributable to exempt income where the factual basis exists, but section 14A disallowance is not automatically reflected in book profit computation. Case-Laws Income Tax Tue, 15 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774986