Exemption u/s 14A read with Rule 8D - disallowance of ...

Expenditure disallowance on exempt income from partnership profits upheld. AO's computation valid under amended rules. CIT(A) erred in deleting disallowance. MAT adjustment partly allowed.

Case Laws Income Tax

July 6, 2024

Exemption u/s 14A read with Rule 8D - disallowance of expenditure attributable to exempt income from partnership firm profits - correctly invoked by AO after recording dissatisfaction, as per Supreme Court ruling in Maxopp Investment Ltd. AO's computation u/r 8D(2) based on assessee's accounts is consonant with IT (14th Amendment) Rules, 2016, applicable from 02.06.2016 for AY 2017-18. CIT(A) erred in deleting disallowance. MAT adjustment u/s 115JB for disallowance u/s 14A - CIT(A) partly correct in not requiring adjustment in book profit for MAT liability, following ITAT Special Bench decisions in Vireet and Radha Madhav cases.

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Exemption u/s 14A read with Rule 8D - disallowance of ...

Expenditure disallowance on exempt income from partnership profits upheld. AO's computation valid under amended rules. CIT(A) erred in deleting disallowance. MAT adjustment partly allowed.

Case Laws Income Tax

July 6, 2024

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