INCOME TAX ACT, 1961

Section 14A Rule 8D

Disallowance under section 14A - Expenditure against exempt income - AO made disallowance in excess of tax free income -

Assessee earned tax free dividend income of Rs. 27,000. AO invoked section 14A read with rule 8D and worked out disallowance of Rs. 2,44,000.Held: Disallowance of expenditure under section 14A could not exceeds dividend income claimed as exempt by the assessee. Therefore, disallowance was restricted to the extent of exempt income so claimed by assessee.Held: Disallowance of expenditure under section 14A could not exceeds dividend income claimed as exempt by the assessee. Therefore, disallowance was restricted to the extent of exempt income so claimed by assessee.

REFERRED :

FAVOUR : Partly in assessee's favour.

A.Y. : 2015-16

INCOME TAX ACT, 1961

Section 32(1)

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