2019 (5) TMI 953

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... wance amount u/s 14A as we are of the clear opinion that the disallowance under Section 14A cannot exceed the exempted income disclosed and assessed by the Assessing Authority. The purpose of Section 14A was very clear that the expenditure incurred to earn exempted income cannot be allowed as a deduction. Normally, in such cases the Tribunal has adopted the norm of 2% of exempted income as perm .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... the learned Income Tax Appellate Tribunal dated 22.04.2016, dismissing the Revenue's Appeal and allowing the Cross Objection filed by the Assessee for the Assessment Year 2010-2011. 2. The issue involved before the learned Tribunal was about the disallowance under Section 14A of the Income Tax Act r/w Rule 8D of the Income Tax Rules, which permits such disallowance of expenditur .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ssed by the Assessing Authority. The purpose of Section 14A of the Act was very clear that the expenditure incurred to earn exempted income cannot be allowed as a deduction. Normally, in such cases the Tribunal has adopted the norm of 2% of exempted income as permissible disallowance under Section 14A of the Act. Therefore, the matter deserves to be examined by the As .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X