https://www.taxtmi.com/caselaws?id=466146 Challenge to disallowance of expenses attributable to exempt income focuses on whether the assessing officer validly recorded dissatisfaction to invoke a formulaic computation. The assessing officers purported dissatisfaction related only to interest expense allocation but lacked factual basis, rendering it arbitrary. Reliance on the judicially recognised presumption that own funds are applied to investments negates a finding of attributable interest in the present facts. Consequently, the mechanical application of the prescribed computation for allocating expenses to exempt income was held not in accordance with law, resulting in relief to the taxpayer. en-us Tue, 03 Oct 2023 00:00:00 +0530 Tue, 27 Jan 2026 19:03:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=466146 Challenge to disallowance of expenses attributable to exempt income focuses on whether the assessing officer validly recorded dissatisfaction to invoke a formulaic computation. The assessing officers purported dissatisfaction related only to interest expense allocation but lacked factual basis, rendering it arbitrary. Reliance on the judicially recognised presumption that own funds are applied to investments negates a finding of attributable interest in the present facts. Consequently, the mechanical application of the prescribed computation for allocating expenses to exempt income was held not in accordance with law, resulting in relief to the taxpayer. Case-Laws Income Tax Tue, 03 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=466146