2017 (11) TMI 126

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..... nts Pvt. Ltd. v. Commissioner of Income Tax [2015 (3) TMI 155 - DELHI HIGH COURT] has held that by no stretch of imagination can Section 14A or Rule 8D be interpreted so as to mean that the entire tax exempt income is to be disallowed. The window for disallowance is indicated in Section 14A, and is only to the extent of disallowing expenditure “incurred by the assessee in relation to the tax exemp .....

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..... pan of the Total income of the assessee even when clear, explicit and unambiguous provisions of section 14A read with Rule 8D do not stipulate any such condition? 3. In Joint Investments Pvt. Ltd. v. Commissioner of Income Tax [2015] 372 ITR 694 (Delhi) wherein this Court held as under: 9. In the present case, the AO has not firstly disclosed why the appellant/assessee s claim for attr .....

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..... ome is to be disallowed. The window for disallowance is indicated in Section 14A, and is only to the extent of disallowing expenditure incurred by the assessee in relation to the tax exempt income . This proportion or portion of the tax exempt income surely cannot swallow the entire amount as has happened in this case. 4. In that view of the matter, the aforementioned question stands answer .....

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