https://www.taxtmi.com/caselaws?id=778547 ITAT held that the AO recorded satisfaction that interest-bearing funds were used to earn exempt income, so the challenge to lack of satisfaction (ground 1.2) was dismissed. The AO's Rule 8D computation produced a disallowance exceeding exempt income; although the assessee made a suo moto disallowance which the AO adopted, ITAT accepted the contention that disallowance under s.14A/Rule 8D cannot exceed exempt income and directed the AO to limit the disallowance to the amount of exempt income. Grounds 1.1 and 1.3 were partly allowed. en-us Tue, 16 Sep 2025 00:00:00 +0530 Thu, 18 Sep 2025 08:30:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=778547 ITAT held that the AO recorded satisfaction that interest-bearing funds were used to earn exempt income, so the challenge to lack of satisfaction (ground 1.2) was dismissed. The AO's Rule 8D computation produced a disallowance exceeding exempt income; although the assessee made a suo moto disallowance which the AO adopted, ITAT accepted the contention that disallowance under s.14A/Rule 8D cannot exceed exempt income and directed the AO to limit the disallowance to the amount of exempt income. Grounds 1.1 and 1.3 were partly allowed. Case-Laws Income Tax Tue, 16 Sep 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=778547