No deduction for expenditure related to non-taxable income; assessing officer may determine amounts by prescribed method. Expenditure related to income that does not form part of total income is not deductible for computing total income. If the Assessing Officer doubts the correctness of claimed expenditure or a claim that no expenditure was incurred in relation to such excluded income, the Assessing Officer may determine the amount of expenditure using any prescribed method. The rule applies even where expenditure is incurred in a tax year but the related income has not accrued, arisen or been received in that year.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
No deduction for expenditure related to non-taxable income; assessing officer may determine amounts by prescribed method.
Expenditure related to income that does not form part of total income is not deductible for computing total income. If the Assessing Officer doubts the correctness of claimed expenditure or a claim that no expenditure was incurred in relation to such excluded income, the Assessing Officer may determine the amount of expenditure using any prescribed method. The rule applies even where expenditure is incurred in a tax year but the related income has not accrued, arisen or been received in that year.
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