https://www.taxtmi.com/caselaws?id=420997 The Tribunal allowed the assessee's appeal, ruling in favor of the assessee and deleting the disallowance under section 14A of the Income Tax Act, 1961 amounting to Rs. 1,66,690 for the Assessment Year 2017-18. The Tribunal emphasized the necessity of establishing a direct nexus between claimed expenditure and exempt income before invoking section 14A, noting that in the absence of such a connection, the assessing officer cannot disallow expenditure. Since no expenditure was claimed to reduce tax liability against exempt income in this case, the disallowance was deemed unwarranted, leading to the allowance of the assessee's grounds. en-us Thu, 03 Mar 2022 00:00:00 +0530 Thu, 14 Apr 2022 17:41:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=420997 The Tribunal allowed the assessee's appeal, ruling in favor of the assessee and deleting the disallowance under section 14A of the Income Tax Act, 1961 amounting to Rs. 1,66,690 for the Assessment Year 2017-18. The Tribunal emphasized the necessity of establishing a direct nexus between claimed expenditure and exempt income before invoking section 14A, noting that in the absence of such a connection, the assessing officer cannot disallow expenditure. Since no expenditure was claimed to reduce tax liability against exempt income in this case, the disallowance was deemed unwarranted, leading to the allowance of the assessee's grounds. Case-Laws Income Tax Thu, 03 Mar 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=420997