https://www.taxtmi.com/caselaws?id=350568 The Tribunal allowed the appeal of the assessee, setting aside the CIT(A)'s order sustaining the disallowance of Rs. 10,00,000 under Section 14A of the Income Tax Act. The Tribunal found that the A.O. failed to establish a proximate relationship between the disallowed expenditure and the exempt income, making the disallowance based on Rule 8D unsustainable. The disallowance for shares held as stock-in-trade was also vacated following judicial precedent. The Tribunal emphasized the necessity of proving specific expenses related to exempt income and remitted the issue back to the A.O. for proper determination. en-us Mon, 25 Sep 2017 00:00:00 +0530 Wed, 08 Nov 2017 11:21:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=350568 The Tribunal allowed the appeal of the assessee, setting aside the CIT(A)'s order sustaining the disallowance of Rs. 10,00,000 under Section 14A of the Income Tax Act. The Tribunal found that the A.O. failed to establish a proximate relationship between the disallowed expenditure and the exempt income, making the disallowance based on Rule 8D unsustainable. The disallowance for shares held as stock-in-trade was also vacated following judicial precedent. The Tribunal emphasized the necessity of proving specific expenses related to exempt income and remitted the issue back to the A.O. for proper determination. Case-Laws Income Tax Mon, 25 Sep 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=350568