The assessee Company itself made disallowances u/s 14A on certain amount on estimate basis. The AO made the disallowance u/s 14A at the higher amount.  The CIT (Appeals) held that the disallowance u/s 14A r.w. Rule 8D could not exceed the income claimed exempt.  On further appeal by the Revenue, the Tribunal hold that the insertion of Explanation to Section 14A by the Finance Act, 2022 is clarificatory and therefore, retrospective in nature.  On further the Hon’ble Court held  that in view of the memorandum explaining the provisions in the Finance Bill, 2022  the Explanation inserted to Section 14A by Finance Bill, 2022 is prospective in nature and accordingly applied prospectively.  Accordingly, the Court held that the ITAT’s order holding that insertion of Explanation to Section 14A clarificatory and retrospective in nature is erroneous in law being set aside and the CIT (Appeals)’s orders are affirmed.  (AY. 2009-10, 2012-13 to 2014-15)