https://www.taxtmi.com/caselaws?id=462254 The ITAT Chandigarh upheld the CIT(A)'s deletion of disallowance under Section 14A read with Rule 8D. The assessee company had computed expenses on exempt income proportionately, which the AO challenged without establishing incorrectness. The ITAT held that separate books for taxable and tax-free income are not legally required, making the AO's objection invalid. However, the matter was remanded to CIT(A) to verify if the current disallowance computation matched the methodology applied in assessment year 2008-09, which was previously accepted. Revenue's appeal was partly allowed for statistical purposes. en-us Tue, 10 Jan 2017 00:00:00 +0530 Fri, 06 Jun 2025 12:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462254 The ITAT Chandigarh upheld the CIT(A)'s deletion of disallowance under Section 14A read with Rule 8D. The assessee company had computed expenses on exempt income proportionately, which the AO challenged without establishing incorrectness. The ITAT held that separate books for taxable and tax-free income are not legally required, making the AO's objection invalid. However, the matter was remanded to CIT(A) to verify if the current disallowance computation matched the methodology applied in assessment year 2008-09, which was previously accepted. Revenue's appeal was partly allowed for statistical purposes. Case-Laws Income Tax Tue, 10 Jan 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462254