Prior to AY 2008-09, disallowance of expenses relating to exempt income u/s. 14A is to be computed on a reasonable basis and not as per rule 8D

 ITAT MUMBAI BENCH ‘F’ Forever Diamonds (P.) Ltd. versus Deputy Commissioner of Income-tax IT APPEAL NO. 5720 (MUM.) OF 2011 [ASSESSMENT YEAR 2004-05] JANUARY  23, 2013 ORDER Rajendra Singh, Accountant Member – This appeal by the assessee is directed against the order dated 31.5.2011 of CIT(A) for the assessment year 2004-05. The assessee in this appeal has raised disputes on two different grounds which relate to adjustment made under section 115JB of the Income tax Act, 1961 (the Act) and disallowance of expenses under section 14A of the Act. 2. We first ...