Disallowance u/s. 14A limited to extent of investment which yielded exempt income

Advertisement India Cements Ltd Vs DCIT (ITAT Chennai) ITAT Chennai held that disallowance in terms of section 14A of the Income Tax Act read with rule 8D restricted to the extent of investment which yielded exempt income. Accordingly, disallowance restricted and appeal partly allowed. Facts- AO observed from the balance-sheet that the assessee held substantial investments which were capable of yielding tax-free income and therefore, according to him, the expenditure incurred in relation to earning such exempt income was to be disallowed u/s. 14A of the Act. AO also observed that, the asses...