Disallowance under Rule 8D(2) can be made on investments which had actually yielded exempt income

Mahindra & Mahindra Limited Corporation Taxation Vs ACIT (ITAT Mumbai) Conclusion: The ITAT directed the ld. AO directed to consider only those investments which had actually yielded exempt income during the year while working out the disallowance under third limb of Rule 8D(2) of the Rules. Facts: Cross appeals were filed by the assessee and the revenue as against the final assessement order dated 30/01/2015 passed by the Assessing Officer pursuant to the direction of the Ld. Dispute Resolution Panel (DRP) under section 144C (5) of the income tax Act, 1961 pertaining to Assessment year 20...