Allowing the appeal of the revenue the Court held that disallowance under rule 8D read with section 14A can never exceed exempted. Court also held that recording of satisfaction is mandatory. (AYs. 2009-10 to 2012-13)
Marg Ltd. v. CIT (2020) 275 Taxman 502 (Mad.)(HC)
S. 14A : Disallowance of expenditure-Exempt income-Recording of satisfaction is mandatory-Disallowance cannot exceed exempt income. [R. 8D]