Rule 8D applies from AY 2008-09, for earlier years disallowance can be worked on reasonable basis

Bombay HC held Rule 8D r.w. S. 14A (2) is not arbitrary or unreasonable and Rule 8D is not retrospective and applies from AY 2008-09, for earlier dis allowance can be worked on reasonable basis Godrej & Boyce Vs. DCIT (Bombay High Court) The decision in Godrej & Boyce v. DCIT, has not provided as much of a reprieve to assessees as would have been hoped- only holding that the dubious Rule 8D of the Income Tax Rules is to be applied prospectively, while upholding its constitutionality and that of section 14A of the Income Tax Act. The case before the Court involved a typical scenario in ...