https://www.taxtmi.com/caselaws?id=790850 Section 14A disallowance must remain confined to expenditure incurred in relation to exempt income and cannot exceed the exempt income itself. Where the assessee had already disallowed the exempt dividend income in its computation, a further disallowance computed under Rule 8D(2)(ii) on average investments, and resulting in an amount far above the exempt income, was held unsustainable. The added amount was therefore deleted, reaffirming that the statutory disallowance cannot be expanded so as to swallow the exempt income. en-us Wed, 29 Apr 2026 00:00:00 +0530 Fri, 01 May 2026 10:14:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=790850 Section 14A disallowance must remain confined to expenditure incurred in relation to exempt income and cannot exceed the exempt income itself. Where the assessee had already disallowed the exempt dividend income in its computation, a further disallowance computed under Rule 8D(2)(ii) on average investments, and resulting in an amount far above the exempt income, was held unsustainable. The added amount was therefore deleted, reaffirming that the statutory disallowance cannot be expanded so as to swallow the exempt income. Case-Laws Income Tax Wed, 29 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=790850