https://www.taxtmi.com/caselaws?id=257256 Applicability of disallowance for expenditure attributable to exempt income was contested: ITAT affirmed that disallowance cannot be invoked where the assessee did not receive exempt income and the revenue failed to rebut that finding, so the AO erred in applying allocation-based adjustments to interest and similar payments; outcome: deletion of the disallowance in favour of the assessee. The tribunal relied on earlier judicial authority holding that absence of a claim or receipt of exempt income precludes the operation of allocation rules, and recorded that the assessing officer's invocation of the allocation mechanism was unsustainable. en-us Thu, 31 Jul 2014 00:00:00 +0530 Thu, 05 Feb 2026 15:55:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=257256 Applicability of disallowance for expenditure attributable to exempt income was contested: ITAT affirmed that disallowance cannot be invoked where the assessee did not receive exempt income and the revenue failed to rebut that finding, so the AO erred in applying allocation-based adjustments to interest and similar payments; outcome: deletion of the disallowance in favour of the assessee. The tribunal relied on earlier judicial authority holding that absence of a claim or receipt of exempt income precludes the operation of allocation rules, and recorded that the assessing officer's invocation of the allocation mechanism was unsustainable. Case-Laws Income Tax Thu, 31 Jul 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=257256