https://www.taxtmi.com/caselaws?id=334729 The Tribunal dismissed the assessee's appeal challenging the application of Rule 8D under Section 14A of the Income-tax Act, 1961. The Tribunal upheld the Assessing Officer's invocation of Rule 8D, finding that the AO had recorded dissatisfaction with the assessee's explanation. Additionally, the Tribunal upheld the Commissioner of Income-tax (Appeals)' decision on the proportionate disallowance of interest expenses, emphasizing the nexus between borrowed funds and financing activities. The Tribunal also rejected the assessee's argument that the disallowance should not exceed actual expenses, directing the computation of disallowance under Rule 8D(iii) at 0.5% of investments resulting in exempt dividend income. en-us Mon, 05 Sep 2016 00:00:00 +0530 Sat, 19 Nov 2016 12:04:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=334729 The Tribunal dismissed the assessee's appeal challenging the application of Rule 8D under Section 14A of the Income-tax Act, 1961. The Tribunal upheld the Assessing Officer's invocation of Rule 8D, finding that the AO had recorded dissatisfaction with the assessee's explanation. Additionally, the Tribunal upheld the Commissioner of Income-tax (Appeals)' decision on the proportionate disallowance of interest expenses, emphasizing the nexus between borrowed funds and financing activities. The Tribunal also rejected the assessee's argument that the disallowance should not exceed actual expenses, directing the computation of disallowance under Rule 8D(iii) at 0.5% of investments resulting in exempt dividend income. Case-Laws Income Tax Mon, 05 Sep 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=334729