https://www.taxtmi.com/caselaws?id=791804 Section 14A disallowance was held to be capped at the amount of exempt income earned for the relevant year. The Tribunal followed the binding Delhi High Court view and held that disallowance under section 14A read with Rule 8D cannot exceed the dividend and long-term capital gains treated as exempt income. It further noted that the Explanation inserted by the Finance Act, 2022 applies prospectively and does not change the position for the year under appeal. Accordingly, the disallowance was restricted to the assessee's exempt income. en-us Thu, 14 May 2026 00:00:00 +0530 Mon, 18 May 2026 08:40:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=791804 Section 14A disallowance was held to be capped at the amount of exempt income earned for the relevant year. The Tribunal followed the binding Delhi High Court view and held that disallowance under section 14A read with Rule 8D cannot exceed the dividend and long-term capital gains treated as exempt income. It further noted that the Explanation inserted by the Finance Act, 2022 applies prospectively and does not change the position for the year under appeal. Accordingly, the disallowance was restricted to the assessee's exempt income. Case-Laws Income Tax Thu, 14 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=791804