https://www.taxtmi.com/caselaws?id=783242 ITAT partly allowed the assessee's appeal. It held that the AO's disallowance under s.14A r.w.r. 8D(2)(i) and 8D(2)(ii) was vitiated for want of jurisdictional satisfaction and absence of proximate nexus with exempt income; those disallowances were deleted, and only a restricted disallowance under Rule 8D(2)(iii), confined to investments actually yielding exempt income, was sustained. The assessee's suo motu disallowance was accepted as consistent with law. Disallowances of professional fees to a foundation and expenses of the UK branch/guest house, including refurbishment by Waverly Renovation Ltd., were treated as revenue expenditure allowable u/s 37(1). However, payment for supply and installation of pumps to Vasudeva Manufacturing & Engineering Pvt. Ltd. was held capital in nature, with depreciation allowable as per law. en-us Thu, 27 Nov 2025 00:00:00 +0530 Fri, 12 Dec 2025 08:55:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=783242 ITAT partly allowed the assessee's appeal. It held that the AO's disallowance under s.14A r.w.r. 8D(2)(i) and 8D(2)(ii) was vitiated for want of jurisdictional satisfaction and absence of proximate nexus with exempt income; those disallowances were deleted, and only a restricted disallowance under Rule 8D(2)(iii), confined to investments actually yielding exempt income, was sustained. The assessee's suo motu disallowance was accepted as consistent with law. Disallowances of professional fees to a foundation and expenses of the UK branch/guest house, including refurbishment by Waverly Renovation Ltd., were treated as revenue expenditure allowable u/s 37(1). However, payment for supply and installation of pumps to Vasudeva Manufacturing & Engineering Pvt. Ltd. was held capital in nature, with depreciation allowable as per law. Case-Laws Income Tax Thu, 27 Nov 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=783242