Section 14A r.w.r. 8D: Disallowance cannot exceed exempted income

DCIT Vs Amazon Textiles Pvt. Ltd. (ITAT Ahmedabad) In the case of DCIT vs. Amazon Textiles Pvt. Ltd. (ITAT Ahmedabad), the primary issue revolves around the disallowance made under section 14A of the Income Tax Act, 1961, read with Rule 8D of the Income Tax Rules. The dispute involves the quantum of disallowance and whether it can exceed the amount of exempted income. Facts of the Case: The assessee, a private limited company, filed its return of income declaring income from capital gains and business/profession. The assessee made a suo-moto disallowance of Rs. 13,40,46,115 under section 14A ...