https://www.taxtmi.com/caselaws?id=784948 Disallowance under Rule 8D must be computed with reference only to investments that actually yield exempt income and limited to 1% of the monthly average of such investments, and any Rule 14A/Rule 8D disallowance should not be added to book profit under the mechanism of Explanation (1) to the book-profit tax. Proportionate interest on borrowings need not be disallowed where interest-free advances are covered by own non-interest funds. Large recurrent payments claimed as business expenditure may be non-business in character. Subsidy for investing in backward area can be taxable as revenue by reason of amendment. Royalty to government is deductible on actual payment basis. Leave encashment provision requires fresh examination under Explanation (1) for book profit. Interest on belated TDS is allowable in computing book profit. Specified Bank Note cash deposits remitted to AO for production of employee corroboration and evidence. en-us Fri, 02 Jan 2026 00:00:00 +0530 Wed, 14 Jan 2026 10:00:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=784948 Disallowance under Rule 8D must be computed with reference only to investments that actually yield exempt income and limited to 1% of the monthly average of such investments, and any Rule 14A/Rule 8D disallowance should not be added to book profit under the mechanism of Explanation (1) to the book-profit tax. Proportionate interest on borrowings need not be disallowed where interest-free advances are covered by own non-interest funds. Large recurrent payments claimed as business expenditure may be non-business in character. Subsidy for investing in backward area can be taxable as revenue by reason of amendment. Royalty to government is deductible on actual payment basis. Leave encashment provision requires fresh examination under Explanation (1) for book profit. Interest on belated TDS is allowable in computing book profit. Specified Bank Note cash deposits remitted to AO for production of employee corroboration and evidence. Case-Laws Income Tax Fri, 02 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=784948