Section 14A disallowance cannot be added back while computing book profits: ITAT Mumbai`

JCIT Vs Rajesh Estates and Nirman Pvt. Ltd. (ITAT Mumbai) Section 14A Can’t Go Beyond Exempt Stream: Mumbai ITAT Caps Disallowance to Partnership Loss & Deletes Section 115JB Adjustment The Mumbai Bench of the ITAT dismissed Revenue’s appeal and upheld the CIT(A)’s order restricting disallowance u/s 14A to the extent of ₹71.04 lakh, being the assessee’s share of loss from a partnership firm, and deleting the corresponding MAT adjustment u/s 115JB. For AY 2017-18, the AO invoked section 14A r.w. Rule 8D and computed a hefty disallowance of ₹2.97 crore on investments in a partner...