https://www.taxtmi.com/caselaws?id=785654 Disallowance for expenditure relating to exempt income was examined with focus on whether the assessing officer recorded requisite satisfaction before making a suo moto disallowance; the reviewing authority found the satisfaction recorded and therefore remitted the issue to the assessing officer for quantification. The assessing officer is directed to verify detailed bifurcation of investments in mutual funds and equity shares and to compute disallowance using the prescribed percentage method based on annual average of monthly investments after excluding mutual fund investments. The appellate adjustments were allowed partly for statistical purposes and the quantum determination was left to verification by the assessing officer. en-us Tue, 06 Jan 2026 00:00:00 +0530 Thu, 29 Jan 2026 09:51:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=785654 Disallowance for expenditure relating to exempt income was examined with focus on whether the assessing officer recorded requisite satisfaction before making a suo moto disallowance; the reviewing authority found the satisfaction recorded and therefore remitted the issue to the assessing officer for quantification. The assessing officer is directed to verify detailed bifurcation of investments in mutual funds and equity shares and to compute disallowance using the prescribed percentage method based on annual average of monthly investments after excluding mutual fund investments. The appellate adjustments were allowed partly for statistical purposes and the quantum determination was left to verification by the assessing officer. Case-Laws Income Tax Tue, 06 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=785654