ITAT Limits 14A Disallowance to Exempt Income: Rule 8D Not Applicable for MAT

KEI Industries Ltd. Vs ACIT (ITAT Delhi) ITAT Delhi Restricts 14A Disallowance to Exempt Income – No Rule 8D in MAT Computation Assessee earned dividend income of ₹3,90,326 during AY 2014-15 & claimed exemption u/s 10. In return, it made suo moto disallowance of ₹25,61,188 u/s 14A applying Rule 8D(2). AO accepted this under normal provisions but also added same figure while computing book profits u/s 115JB, invoking clause (f) of Explanation 1. CIT(A) confirmed. Before Tribunal, Assessee contended that Disallowance u/s 14A cannot exceed exempt income as per Delhi HC ruling in Joint I...