The High Court held that where the AO did not provide any reasons for his dissatisfaction with the assessee’s suo motu disallowance under Section 14A, the Tribunal was justified in restricting the disallowance to 0.5 per cent of the exempt income.
CIT, (LTU) v. Reliance Industries Ltd. [2024] 161 taxmann.com 423 (Bom.)(HC)
S. 14A : Expenditure in relation to exempt income-AO’s satisfaction-Disallowance without recording reasons for dissatisfaction with assessee’s suo motu disallowance is invalid-Order of Tribunal affirmed.[S. 260A, R. 8D]
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