ITAT Restricts Section 14A Disallowance as It Cannot Exceed Exempt Income

Rohit Real Estates Pvt. Ltd. Vs ACIT (ITAT Lucknow) The Lucknow Bench of the Income Tax Appellate Tribunal (ITAT) adjudicated an appeal filed by the assessee against the order of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre dated 16.08.2022 for Assessment Year 2017-18. The dispute related to disallowance under Section 14A of the Income Tax Act read with Rule 8D of the Income Tax Rules in relation to expenditure allegedly incurred for earning exempt dividend income. The assessee challenged the disallowance of Rs.2,54,373 sustained by the CIT(A). The grounds of appeal...