ITAT Mumbai Judgments — June 2023

The tribunal, following its Coordinate Bench's decisions in the assessee's own case for previous assessment years, directed the Assessing Officer to recompute the Section 14A disallowance under Rule 8D(2)(iii) only on investments that yielded exempt income. Regarding sales tax incentives, it upheld the treatment of these incentives as partly capital and partly revenue receipts, based on the purpose of the respective state schemes.