https://www.taxtmi.com/caselaws?id=401813 The Court set aside the impugned order and restored the appeals to the Tribunal for fresh consideration based on legal principles from a Division Bench judgment. The Assessing Authority must record satisfaction before using Rule 8D for disallowance, ensuring it does not exceed exempted income. The Tribunal's approach of allowing disallowance beyond exempted income was deemed unsustainable. The judgment emphasized adherence to statutory provisions to maintain tax assessment integrity. The Tax Case Appeals were disposed of without costs, highlighting the importance of reasonable and proportionate expenditure to earn income. en-us Tue, 24 Nov 2020 00:00:00 +0530 Thu, 17 Dec 2020 09:44:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=401813 The Court set aside the impugned order and restored the appeals to the Tribunal for fresh consideration based on legal principles from a Division Bench judgment. The Assessing Authority must record satisfaction before using Rule 8D for disallowance, ensuring it does not exceed exempted income. The Tribunal's approach of allowing disallowance beyond exempted income was deemed unsustainable. The judgment emphasized adherence to statutory provisions to maintain tax assessment integrity. The Tax Case Appeals were disposed of without costs, highlighting the importance of reasonable and proportionate expenditure to earn income. Case-Laws Income Tax Tue, 24 Nov 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=401813