Estimated Section 14A Disallowance Could Not Be Added to Book Profits

Mahindra Lifespace Developers Ltd. Vs DCIT (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT), Mumbai, partly allowed the assessee’s appeal for Assessment Year 2005-06 against the order of the Commissioner of Income Tax (Appeals) [NFAC] concerning disallowance under Section 14A of the Income-tax Act. In the original assessment, the Assessing Officer had made a disallowance of ₹255.29 lakh under Section 14A. The CIT(A) granted partial relief, and the Tribunal subsequently remanded the issue to the Assessing Officer for fresh consideration. Following reconsideration, the CIT(A) sustained...