https://www.taxtmi.com/caselaws?id=188998 The ITAT reversed the FAA's decision, ruling in favor of the assessee in a case challenging the disallowance of expenses under section 14A of the Income-tax Act. The ITAT emphasized that the Assessing Officer must demonstrate the actual expenditure related to earning exempt income before disallowing it. As the assessee had voluntarily disallowed expenses and the AO failed to provide sufficient reasoning for the disallowance, the ITAT found the disallowance unjustified. Consequently, the ITAT allowed the appeal and set aside the disallowance, favoring the assessee. en-us Wed, 13 Jul 2016 00:00:00 +0530 Fri, 23 Dec 2016 10:11:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=188998 The ITAT reversed the FAA's decision, ruling in favor of the assessee in a case challenging the disallowance of expenses under section 14A of the Income-tax Act. The ITAT emphasized that the Assessing Officer must demonstrate the actual expenditure related to earning exempt income before disallowing it. As the assessee had voluntarily disallowed expenses and the AO failed to provide sufficient reasoning for the disallowance, the ITAT found the disallowance unjustified. Consequently, the ITAT allowed the appeal and set aside the disallowance, favoring the assessee. Case-Laws Income Tax Wed, 13 Jul 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=188998