https://www.taxtmi.com/caselaws?id=395651 The ITAT Kolkata allowed the assessee's appeal, directing the deletion of the addition made by the AO under section 14A of the Income-tax Act. The ITAT emphasized that the AO must verify the expenses incurred by the assessee for earning exempt income before applying Rule 8D. The AO's direct application of Rule 8D without establishing the correctness of the assessee's claim was deemed arbitrary and unsustainable, leading to the allowance of the appeal. Additionally, the judgment acknowledged the impact of the COVID-19 pandemic on the hearing period, following a precedent to exclude lockdown days from the hearing timeline. en-us Wed, 27 May 2020 00:00:00 +0530 Mon, 01 Jun 2020 09:42:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=395651 The ITAT Kolkata allowed the assessee's appeal, directing the deletion of the addition made by the AO under section 14A of the Income-tax Act. The ITAT emphasized that the AO must verify the expenses incurred by the assessee for earning exempt income before applying Rule 8D. The AO's direct application of Rule 8D without establishing the correctness of the assessee's claim was deemed arbitrary and unsustainable, leading to the allowance of the appeal. Additionally, the judgment acknowledged the impact of the COVID-19 pandemic on the hearing period, following a precedent to exclude lockdown days from the hearing timeline. Case-Laws Income Tax Wed, 27 May 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=395651