https://www.taxtmi.com/caselaws?id=279374 The Tribunal allowed three appeals by different assesses concerning the disallowance of expenses under section 14A of the Act read with Rule 8D(2)(iii) for the Assessment Year 2010-2011. The Tribunal found that the disallowance made by the AO without considering actual expenses incurred for earning dividend income was unsustainable. It concluded that the disallowance exceeded expenses directly related to earning exempt income and was based on a mechanical application of the rule. The Tribunal reversed the decisions of the CIT(A) in all three cases, emphasizing the need for proportionate and directly linked disallowances. en-us Fri, 11 Dec 2015 00:00:00 +0530 Tue, 18 Apr 2023 13:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=279374 The Tribunal allowed three appeals by different assesses concerning the disallowance of expenses under section 14A of the Act read with Rule 8D(2)(iii) for the Assessment Year 2010-2011. The Tribunal found that the disallowance made by the AO without considering actual expenses incurred for earning dividend income was unsustainable. It concluded that the disallowance exceeded expenses directly related to earning exempt income and was based on a mechanical application of the rule. The Tribunal reversed the decisions of the CIT(A) in all three cases, emphasizing the need for proportionate and directly linked disallowances. Case-Laws Income Tax Fri, 11 Dec 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=279374