Provisions of Section 14A & Rule 8D constitutionally valid

Disallowance under section 14A has to be made in accordance with the principle laid down by the Hon’ble Bombay High Court in the case of Godrej & Boyce Mfg.Co.Ltd. Mumbai. Vs. Dy. Commissioner of Income . Rule 8D should not be applied and the AO has to adopt a reasonable basis or method consistent with all relevant facts and circumstances and after affording reasonable opportunity to the assessee to place all germane material on the record. It was further held that:- i)The provisions of sub sections (2) and (3) of Section 14A of the Income Tax Act 1961 are constitutionally valid; ii)The ...