Only Investments in respect of which income is exempt to be considered in working of disallowance U/s. 14A

Brief of the case : The ITAT bench of Panaji in the case of Sesa Resources Limited held that the disallowance under Sec 14A read with rule 8D can be made only in respect of investments which are earning income exempt from tax and not the total investments. Thus, in the present case AO made a factual error by taking the figure of total investments while working out disallowance as per formula prescribed in Rule 8D. Facts of the case: The assessee had taken loans and also made some investments during the previous year. It filed its return of income reporting disallowance of Rs. 2,05,410/- u...