Adjustment of section 14A disallowance cannot be made while computing Section 115JB Book Profits

J. K. Fenner (India) Limited Vs JCIT (ITAT Chennai) It is also settled law that disallowance made u/s 14A could not exceed the exempt income earned by the assessee. Further, disallowance u/r 8D(2)(iii) was to be computed only by considering those investments which have yielded exempt income during the year. These propositions are duly supported by the decision of Hon’ble Madras High Court in the case of Redington India Private Ltd. (392 ITR 633) as well as another decision of Hon’ble Court in CIT V/s Chettinad Logistics Private Ltd. (95 com 250). The assessee’s plea that the investments ...