Provisions of Rule 8D applicable from A.Y. 2008-09 and is not retrospective

Facts of the case:

AO had disallowed the expenses u/s 14A by applying the rule 8D for the A.Y 07-08 but the assessee argued and gave the supporting of the decided case law by Hon’ble High Court in its own decision in which it was decided that the sec 14A would be applicable from A.Y 08-09  and it would not have any retrospective effect.

Contention of the assessee:

Assessee was of the view that the rule 8D of sec 14A would be applicable from A.Y 08-09 but not from A.Y 07-08 which was supported by the Hon’ble High Cour

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