Section 14A Disallowance Capped at Exempt, Income Principal Loan Write-off to Wholly-Owned Subsidiary Allowed as Bad Debt: ITAT Mumbai

ACIT Vs Raheja Universal Pvt. Ltd (ITAT Mumbai) Section 14A Disallowance Capped at Exempt Income; Principal Loan Write-off to Wholly-Owned Subsidiary Allowed as Bad Debt – ITAT Mumbai The Mumbai Bench of the ITAT disposed of the Revenue’s appeal and the assessee’s cross-objection for AY 2018-19 in the case of Raheja Universal Pvt. Ltd., upholding the relief granted by the CIT(A) on all major issues. On Section 14A, the Tribunal affirmed that disallowance cannot exceed the exempt income actually earned during the year. Where dividend income was nominal, the disallowance was rightly restri...