Case Law Analysis
|Income Tax Appellate Tribunal
Section 14A Disallowance Capped at Exempt Income Amount : ITAT Delhi Sets Precedent for Rule 8D Compliance
ITAT Delhi rules that disallowance under Section 14A of the Income Tax Act cannot exceed the exempt income earned, quashing a Rs. 3.44 crore addition in Panacea Biotec Ltd. The judgment reinforces that Rule 8D calculations must align with actual exempt income, impacting tax assessments for companies with mixed investment portfolios.