No Nexus, No Big Section 14A Hit: Disallowance Slashed to ₹10 Lakh

ACIT Vs Nitin Dwarkadas Nyati (ITAT Pune) No Nexus, No Excess Disallowance—14A Restricted Again- ₹3.05 Cr 14A Disallowance Cut to ₹10 Lakh-Reasonable Disallowance Wins: The Pune ITAT dismissed the Revenue’s appeal and upheld restriction of disallowance u/s 14A to ₹10 lakh, noting that the very issue stood concluded in Assessee’s own case for the same AY. The AO had made a huge disallowance of ₹3.05 crore u/s 14A r.w. Rule 8D on exempt income comprising share of profit from firm, dividend & PPF interest. The CIT(A) had directed recomputation @ 1% of only those investments yiel...