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DCIT vs. ING Investment (ITAT Mumbai)

COURT:
CORAM:
SECTION(S):
GENRE:
CATCH WORDS:
COUNSEL:
DATE: (Date of pronouncement)
DATE: October 10, 2008 (Date of publication)
AY:
FILE:
CITATION:

(1) For purposes of s. 14A, only the expenditure which is proved to have a nexus with the exempt income can be disallowed and not on an ad-hoc basis.

(2) Sub-secs (2) and (3) of s. 14A inserted with effect from the AY 2007-2008 {and Rule 8D} (which sanction proportionate disallowance) are prospective and do not apply to earlier assessment years.

Note: The judgement of the Bombay ITAT in Citicorp Finance 108 ITD 457 was not followed.

See Also: New Rule 8D – A lesson in tight rope walking?