ITAT Limits Section 14A Disallowance to Exempt Dividends, Restores Maintenance Deduction, Denies Interest on Delayed TDS

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....The ITAT allowed the assessee's appeal in part by directing the AO to restrict the disallowance under section 14A read with Rule 8D to the exempt dividend income of Rs. 15,40,235, affirming that the assessed income may be lower than the returned income. The claim for deduction of maintenance expenses was restored to the AO for fresh adjudication due to lack of factual examination by lower authorities. However, the Tribunal dismissed the assessee's claim for deduction of interest on delayed TDS payment under section 37(1), holding that such interest is not an allowable business expenditure as it arises from non-compliance with statutory requirements and is not incidental to business operations. Thus, grounds one and two were allowed (with the second for statistical purposes), while ground three was dismissed.....