https://www.taxtmi.com/caselaws?id=469012 Disallowance of indirect expenditure under section 14A read with rule 8D requires the Assessing Officer to first record satisfaction, based on the accounts, that the assessee's claim of no such expenditure is incorrect; absent that recorded satisfaction, the disallowance cannot be sustained. The amendment to rule 8D effective from 02.06.2016 is prospective and applies from assessment year 2017-18 onwards. For computing the average value of investments, only investments that yielded exempt income are to be included. On that basis, the disallowance was set aside and the matter remanded for fresh consideration and recomputation under the unamended rule 8D. en-us Tue, 22 Feb 2022 00:00:00 +0530 Fri, 29 May 2026 15:21:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=469012 Disallowance of indirect expenditure under section 14A read with rule 8D requires the Assessing Officer to first record satisfaction, based on the accounts, that the assessee's claim of no such expenditure is incorrect; absent that recorded satisfaction, the disallowance cannot be sustained. The amendment to rule 8D effective from 02.06.2016 is prospective and applies from assessment year 2017-18 onwards. For computing the average value of investments, only investments that yielded exempt income are to be included. On that basis, the disallowance was set aside and the matter remanded for fresh consideration and recomputation under the unamended rule 8D. Case-Laws Income Tax Tue, 22 Feb 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=469012