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The Tax Publishers2019 TaxPub(DT) 5118 (Mum-Trib) INCOME TAX ACT, 1961
Section 14A
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.
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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)
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