https://www.taxtmi.com/caselaws?id=753059 ITAT Raipur allowed the appeal, setting aside the disallowance under Section 14A read with Rule 8D. The tribunal held that the AO mechanically applied Rule 8D(2)(ii) methodology for disallowing administrative expenses without first examining the assessee's accounts and forming requisite satisfaction regarding the correctness of the claim that no expenses were incurred for exempt income. The AO failed to comply with the statutory obligation of evaluating the assessee's accounts before proceeding with disallowance. The CIT(A)'s order sustaining the disallowance was set aside, deciding in favor of the assessee. en-us Wed, 22 May 2024 00:00:00 +0530 Fri, 24 May 2024 07:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753059 ITAT Raipur allowed the appeal, setting aside the disallowance under Section 14A read with Rule 8D. The tribunal held that the AO mechanically applied Rule 8D(2)(ii) methodology for disallowing administrative expenses without first examining the assessee's accounts and forming requisite satisfaction regarding the correctness of the claim that no expenses were incurred for exempt income. The AO failed to comply with the statutory obligation of evaluating the assessee's accounts before proceeding with disallowance. The CIT(A)'s order sustaining the disallowance was set aside, deciding in favor of the assessee. Case-Laws Income Tax Wed, 22 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753059