https://www.taxtmi.com/caselaws?id=472399 Section 14A read with Rule 8D supports disallowance of expenditure related to exempt income where the taxpayer admits that indirect expenses were incurred and fails to show that the prescribed computation, based on average investments, is incorrect. The exempt-income expenditure disallowance therefore remains sustainable. Municipal regularisation charges are deductible as business expenditure where they are compensatory rather than payments for an identified statutory offence or an act prohibited by law. Such charges are not barred by the Explanation to section 37(1), and the related disallowance is deleted. en-us Wed, 04 Nov 2015 00:00:00 +0530 Sat, 10 Oct 2026 11:41:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=472399 Section 14A read with Rule 8D supports disallowance of expenditure related to exempt income where the taxpayer admits that indirect expenses were incurred and fails to show that the prescribed computation, based on average investments, is incorrect. The exempt-income expenditure disallowance therefore remains sustainable. Municipal regularisation charges are deductible as business expenditure where they are compensatory rather than payments for an identified statutory offence or an act prohibited by law. Such charges are not barred by the Explanation to section 37(1), and the related disallowance is deleted. Case-Laws Income Tax Wed, 04 Nov 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=472399