https://www.taxtmi.com/caselaws?id=795802 Additional disallowance of expenditure relating to exempt income under Section 14A read with Rule 8D requires the Assessing Officer to record objective dissatisfaction, based on examination of the accounts, with the correctness of the taxpayer's own disallowance before applying the prescribed computation mechanism. The notes also address the allowability of mark-to-market losses on shares consistently held as stock-in-trade and valued at cost or market value, whichever is lower. ESOP expenditure incurred to compensate, retain and motivate employees is treated as revenue expenditure where shares are ultimately allotted. Corresponding adjustments to book profit under Section 115JB cannot continue where the underlying Section 14A and ESOP disallowances do not survive under normal provisions. en-us Fri, 22 May 2026 00:00:00 +0530 Tue, 28 Jul 2026 08:30:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795802 Additional disallowance of expenditure relating to exempt income under Section 14A read with Rule 8D requires the Assessing Officer to record objective dissatisfaction, based on examination of the accounts, with the correctness of the taxpayer's own disallowance before applying the prescribed computation mechanism. The notes also address the allowability of mark-to-market losses on shares consistently held as stock-in-trade and valued at cost or market value, whichever is lower. ESOP expenditure incurred to compensate, retain and motivate employees is treated as revenue expenditure where shares are ultimately allotted. Corresponding adjustments to book profit under Section 115JB cannot continue where the underlying Section 14A and ESOP disallowances do not survive under normal provisions. Case-Laws Income Tax Fri, 22 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795802