Section 14A Disallowance Restricted to Exempt-Income Investments; ESOP Expense Allowed

ACIT Vs Thyrocare Technologies Limited (ITAT Mumbai) The Income Tax Appellate Tribunal Mumbai decided multiple appeals filed by the Revenue involving common issues across assessment years 2018–19, 2020–21, 2021–22, 2022–23, and 2023–24. The primary issues related to disallowance under Section 14A, allowability of Employee Stock Option Plan (ESOP) expenses, and disallowance of sales incentive expenditure under Section 37(1). On the issue of disallowance under Section 14A read with Rule 8D, the Assessing Officer had computed a higher disallowance by considering the total investments of...