https://www.taxtmi.com/caselaws?id=786791 Disallowance under the income-tax rule framework was addressed by treating computation method as determinative: Rule 8D application should be confined to investments that actually yielded exempt income, and the disallowance must be recalculated on the average of such investments. On recalculation and after permitting a suo-moto deduction, the net disallowance was reduced and the assessing officer was directed to restrict the addition accordingly, with reliance on higher-court precedent for the same proposition. The appeal was partly allowed in favour of the taxpayer. en-us Tue, 17 Feb 2026 00:00:00 +0530 Thu, 19 Feb 2026 07:58:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=786791 Disallowance under the income-tax rule framework was addressed by treating computation method as determinative: Rule 8D application should be confined to investments that actually yielded exempt income, and the disallowance must be recalculated on the average of such investments. On recalculation and after permitting a suo-moto deduction, the net disallowance was reduced and the assessing officer was directed to restrict the addition accordingly, with reliance on higher-court precedent for the same proposition. The appeal was partly allowed in favour of the taxpayer. Case-Laws Income Tax Tue, 17 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=786791