https://www.taxtmi.com/caselaws?id=380326 The Tribunal partly allowed the appeal, directing a reasonable disallowance of 10% of total expenses under section 14A of the Act, amounting to Rs. 6,73,589. The Tribunal disagreed with the CIT(A)'s calculation method and held that a lump sum disallowance was not justified, as the majority of expenses were for business operations unrelated to exempt income. The Tribunal emphasized the need for a direct nexus between expenses and exempt income for disallowance, resulting in the deletion of the remaining disallowance and a favorable outcome for the assessee. en-us Wed, 15 May 2019 00:00:00 +0530 Sat, 18 May 2019 06:51:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=380326 The Tribunal partly allowed the appeal, directing a reasonable disallowance of 10% of total expenses under section 14A of the Act, amounting to Rs. 6,73,589. The Tribunal disagreed with the CIT(A)'s calculation method and held that a lump sum disallowance was not justified, as the majority of expenses were for business operations unrelated to exempt income. The Tribunal emphasized the need for a direct nexus between expenses and exempt income for disallowance, resulting in the deletion of the remaining disallowance and a favorable outcome for the assessee. Case-Laws Income Tax Wed, 15 May 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=380326