https://www.taxtmi.com/caselaws?id=789119 Disallowance under section 14A read with Rule 8D(2)(iii) was sustained because the computation followed earlier directions and included only investments yielding exempt income. Education cess, secondary education cess and higher education cess were not deductible as business expenditure under section 37, as Explanation 3 to section 40(a)(ii) clarifies that tax includes surcharge and cess, consistent with the Supreme Court position. The taxpayer's challenge to the section 14A disallowance failed, while the Revenue's position on cess deductibility prevailed. en-us Mon, 30 Mar 2026 00:00:00 +0530 Fri, 03 Apr 2026 08:49:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=789119 Disallowance under section 14A read with Rule 8D(2)(iii) was sustained because the computation followed earlier directions and included only investments yielding exempt income. Education cess, secondary education cess and higher education cess were not deductible as business expenditure under section 37, as Explanation 3 to section 40(a)(ii) clarifies that tax includes surcharge and cess, consistent with the Supreme Court position. The taxpayer's challenge to the section 14A disallowance failed, while the Revenue's position on cess deductibility prevailed. Case-Laws Income Tax Mon, 30 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=789119