Case Law Analysis
|Income Tax Appellate Tribunal
Section 14A IT Act | Rule 8D(2)(ii) Disallowance Limited to Investments Yielding Exempt Income in Same Year : ITAT Mumbai
ITAT Mumbai clarifies that disallowance under Rule 8D(2)(ii) applies only to investments that actually generated exempt income during the assessment year, not the total investment portfolio. The ruling sets a precedent for computing disallowance under Section 14A, impacting taxpayers with mixed investment income.