INCOME TAX ACT, 1961

Section 14A

Disallowance under section 14A - Expenditure against exempt income - Invocation of rule 8D - Disallowance in excess of exempt income

Assessee earned exempt income by way of dividend from shares and mutual funds. AO invoked section 14A read with rule 8D and worked out disallowance in excess of tax free income earned by assessee.Held: Disallowance under section 14A read with rule 8D could not exceed exempt income earned by assessee during the year, accordingly, AO was directed to restrict disallowance to exempt income.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13

INCOME TAX ACT, 1961

Section 41(1)

SUBSCRIBE FOR FULL CONTENT