Rule 8D prospective and applicable on and from the A.Y. 2008-09

A.O. has applied Rule 8D holding that Rule 8D is retrospective in nature. It is now settled that Rule 8D is prospective and is applicable on and from the A.Y. 2008- 09. We direct the A.O. to recalculate the dis allowance, if any, without applying Rule 8D on the dividend income shown at Rs. 4,00,039/-. The A.O. is further directed to verify the contention of the appellant that the investments have not been made out of borrowed capital, after giving the appellant an opportunity of being heard. INCOME TAX APPELLATE TRIBUNAL, MUMBAI ITA No. 5281/Mum/2010, Assessment Year: 2007- 08 M/s. Global Avia...