https://www.taxtmi.com/caselaws?id=339628 The Tribunal allowed the appeal in favor of the assessee, directing the deletion of the disallowance of Rs. 19,81,195 under Section 14A, except for the Rs. 2,50,000 voluntarily disallowed by the assessee. The Tribunal emphasized the requirement for the Assessing Officer (AO) to record satisfaction regarding the incorrectness of the assessee's claim before invoking Rule 8D. The AO's mechanical application of Rule 8D without proper assessment of the expenditure incurred for earning exempt income rendered the disallowance unsustainable. en-us Mon, 27 Feb 2017 00:00:00 +0530 Sat, 04 Mar 2017 13:49:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=339628 The Tribunal allowed the appeal in favor of the assessee, directing the deletion of the disallowance of Rs. 19,81,195 under Section 14A, except for the Rs. 2,50,000 voluntarily disallowed by the assessee. The Tribunal emphasized the requirement for the Assessing Officer (AO) to record satisfaction regarding the incorrectness of the assessee's claim before invoking Rule 8D. The AO's mechanical application of Rule 8D without proper assessment of the expenditure incurred for earning exempt income rendered the disallowance unsustainable. Case-Laws Income Tax Mon, 27 Feb 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=339628