https://www.taxtmi.com/caselaws?id=465974 Clarifies that disallowance under section 14A read with rule 8D must be restricted so that the amount does not exceed exempt income; the assessing officer is to verify whether long-term capital gains arose from investments yielding taxable incomeif so, no disallowance is required for the year. If any exempt income exists, the AO must restrict the disallowance to the quantum of exempt income and compute the average value of investments by considering only investments that yielded exempt income for the purpose of calculating the disallowance; the disallowance cannot exceed the exempt income. en-us Tue, 31 Jul 2018 00:00:00 +0530 Sat, 17 Jan 2026 20:13:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465974 Clarifies that disallowance under section 14A read with rule 8D must be restricted so that the amount does not exceed exempt income; the assessing officer is to verify whether long-term capital gains arose from investments yielding taxable incomeif so, no disallowance is required for the year. If any exempt income exists, the AO must restrict the disallowance to the quantum of exempt income and compute the average value of investments by considering only investments that yielded exempt income for the purpose of calculating the disallowance; the disallowance cannot exceed the exempt income. Case-Laws Income Tax Tue, 31 Jul 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465974