Disallowance u/s. 14A to be restricted to dividend yielding investments

EIH Limited Vs DCIT (ITAT Kolkata)

ITAT Kolkata held that the disallowance u/s 14A of the Income Tax Act, read with Rule 8D of the Income Tax Rules should be restricted to the dividend yielding investments. Accordingly, AO directed to re-compute disallowance.

Facts- The issue in the present appeal is regarding the disallowance of Rs. 50,51,380/- u/s 14A of the Act r.w. Rule 8D, r.w. section 115JB of the Act. Briefly, it is observed that the appellant had suo-moto disallowed Rs. 10,32,739/- on this account. However, AO applied Rule 8D of the I.T. Rules and di

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