The Assessing Officer made disallowance under section 14A read with rule 8D in excess of the exempt income earned by the assessee. The Commissioner (Appeals) restricted the disallowance to the amount of exempt income. The Tribunal upheld the order of the Commissioner (Appeals) holding that disallowance under section 14A cannot exceed the exempt income earned during the relevant previous year. The Assessing Officer added the disallowance computed under section 14A while determining the book profit under section 115JB. The Tribunal held that computation under section 115JB is governed by the specific provisions contained therein and book profit cannot be adjusted by importing the disallowance computed under section 14A read with rule 8D. Accordingly, deletion of the addition by the Commissioner (Appeals) was upheld. (AY. 2010-11 to 2012-13)<\/p>\n","protected":false},"excerpt":{"rendered":"
S.14A: Disallowance of expenditure-Exempt income-Disallowance under section 14A cannot exceed the exempt income earned during the year-Book profit-Minimum Alternate Tax-Disallowance computed under section 14A read with rule 8D cannot be added while computing book profit under section 115JB. [S. 11JB, R. 8D] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-62866","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-glY","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62866","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=62866"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62866\/revisions"}],"predecessor-version":[{"id":62867,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62866\/revisions\/62867"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=62866"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=62866"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=62866"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}