The Assessing Officer computed the disallowance under rule 8D without the necessary opening and closing value of investments. The Tribunal held that the prescribed formula could not be properly applied in such circumstances and sustained an estimated disallowance of 10 per cent. of the dividend income as reasonable. (AY. 2013-14).
Yokogawa India Ltd. v. Dy. CIT (2025) 122 ITR 499 (Bang.)(Trib.)
S.14A: Disallowance of expenditure-Exempt income-Rule 8D not applicable in absence of requisite data-Disallowance restricted to 10 per cent. of dividend income. [R. 8D]
Leave a Reply