Disallowance Under Section 14A Cannot Exceed Exempt Income: ITAT Delhi

Jubilant Securities Pvt Ltd Vs DCIT (ITAT Delhi) Disallowance Under Section 14A Cannot Exceed Exempt Income: ITAT Delhi In the significant case of Jubilant Securities Pvt Ltd Vs DCIT, the Income Tax Appellate Tribunal (ITAT) Delhi held that disallowance under Section 14A, in relation with Rule 8D, cannot exceed the exempt income earned during a specific assessment year. The decision pivoted on the assessment of disallowed expenses and the penalty levied under Section 270A of the Income Tax Act, 1961. The judgment brought attention to the principles laid down by numerous judicial precedents tha...