https://www.taxtmi.com/caselaws?id=788122 Challenge concerns computation of disallowance for exempt income and allowability of depreciation where premises yield rent. Rule 8D(2) contains a mandatory second limb percentage formula which must be applied and the disallowance limited to investments that actually produced exempt income; recomputation is directed accordingly. Allowability of depreciation depends on the head of income: rent offered under Income from House Property admits section 24 deductions, whereas depreciation under the block regime is available only if letting amounts to commercial exploitation and the property forms part of business assets; the latter requires factual enquiry by the assessing officer. en-us Fri, 13 Mar 2026 00:00:00 +0530 Tue, 17 Mar 2026 08:23:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=788122 Challenge concerns computation of disallowance for exempt income and allowability of depreciation where premises yield rent. Rule 8D(2) contains a mandatory second limb percentage formula which must be applied and the disallowance limited to investments that actually produced exempt income; recomputation is directed accordingly. Allowability of depreciation depends on the head of income: rent offered under Income from House Property admits section 24 deductions, whereas depreciation under the block regime is available only if letting amounts to commercial exploitation and the property forms part of business assets; the latter requires factual enquiry by the assessing officer. Case-Laws Income Tax Fri, 13 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=788122