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2023 (7) TMI 138 - BOMBAY HIGH COURTDisallowance u/s 14A r.w.r.8D - expenditure as incurred on earning the dividend income, that much of the expenditure which is attributable to the dividend income - HELD THAT:- If an expenditure incurred has no causal connection with the exempted income, then such an expenditure would obviously be treated as not related to the income that is exempted from tax, and such expenditure would be allowed as business expenditure. To put it differently, such expenditure would then be considered as incurred in respect of other income which is to be treated as part of the total income. Rule 8D provides for method for determining amount of expenditure in relation to income not includible in total income. In view of the judgment of Maxopp Investment Ltd [2018 (3) TMI 805 - SUPREME COURT] we hereby quash and set aside the order impugned passed by ITAT and direct the AO to give effect to this order passed by us. .
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