https://www.taxtmi.com/caselaws?id=338947 HC held for the Revenue, ruling that when an AO is not satisfied with an assessee's claim about expenditure attributable to exempt income, the AO must apply Rule 8D (the prescribed method under s.14A(2)) rather than make ad hoc estimates. The AO was justified in presuming some common-fund expenses related to exempt income and erred by estimating amounts instead of following Rule 8D in full. The court left open whether a presumption that exempt income was earned from the assessee's own funds applies here, and clarified Rule 8D(ii) relates only to interest. en-us Fri, 03 Feb 2017 00:00:00 +0530 Mon, 15 Sep 2025 13:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=338947 HC held for the Revenue, ruling that when an AO is not satisfied with an assessee's claim about expenditure attributable to exempt income, the AO must apply Rule 8D (the prescribed method under s.14A(2)) rather than make ad hoc estimates. The AO was justified in presuming some common-fund expenses related to exempt income and erred by estimating amounts instead of following Rule 8D in full. The court left open whether a presumption that exempt income was earned from the assessee's own funds applies here, and clarified Rule 8D(ii) relates only to interest. Case-Laws Income Tax Fri, 03 Feb 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=338947