Forgot password
New User/ Regiser
⇒ Register to get Live Demo
2014 (8) TMI 457 - BOMBAY HIGH COURT
Application of Rule 8D – Quantification of disallowance u/s 14A – Held that:- The Tribunal has rightly followed the decision in Godrej & Boyce Mfg. Co. Ltd. [2010 (8) TMI 77 - BOMBAY HIGH COURT] - Rule 8D of the Income Tax Rules, 1962 is applicable prospectively w.e.f. AY 2008-09, the appeal relates to AY 2005-06 - the Tribunal correctly held that Rule 8D of the Income Tax Rules, 1962 is inapplicable for the AY under consideration – Decided against Revenue.
Restriction of disallowance @2% of exempted income - Held that:- The Tribunal while applying the decision in Godrej & Boyce Mfg. Co. Ltd. [2010 (8) TMI 77 - BOMBAY HIGH COURT] has disallowed the expenditure only to the extent of 2% of the total exempt income earned by the assessee - the Tribunal rightly remanded the matter to the AO for verification of the disallowance claimed and restrictes the disallowance only to the extent to 2% of the total exempt income – Decided against Revenue.