https://www.taxtmi.com/caselaws?id=347714 Disallowance under section 14A read with Rule 8D cannot be sustained unless the Assessing Officer first records objective dissatisfaction with the assessee's claim that no expenditure was incurred to earn exempt income. The Tribunal held that recording of satisfaction under section 14A(2) is a mandatory precondition to invoking Rule 8D, and a mechanical disallowance without that finding is impermissible. On that basis, the disallowance was deleted and the issue was decided in favour of the assessee. en-us Mon, 04 Sep 2017 00:00:00 +0530 Sat, 09 Sep 2017 09:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=347714 Disallowance under section 14A read with Rule 8D cannot be sustained unless the Assessing Officer first records objective dissatisfaction with the assessee's claim that no expenditure was incurred to earn exempt income. The Tribunal held that recording of satisfaction under section 14A(2) is a mandatory precondition to invoking Rule 8D, and a mechanical disallowance without that finding is impermissible. On that basis, the disallowance was deleted and the issue was decided in favour of the assessee. Case-Laws Income Tax Mon, 04 Sep 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=347714