https://www.taxtmi.com/caselaws?id=472658 Section 14A(2) requires the Assessing Officer to record objective satisfaction, after examining the assessee's accounts, that the assessee's own disallowance of expenditure relating to exempt income is incorrect before applying Rule 8D. General observations about mixed funds, insufficient details, or the amount of exempt income do not establish the required account-based dissatisfaction. Without recorded satisfaction meeting this statutory standard, Rule 8D cannot support a further disallowance and the assessee's suo motu disallowance must be accepted. en-us Mon, 30 Sep 2024 00:00:00 +0530 Wed, 21 Oct 2026 11:04:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=472658 Section 14A(2) requires the Assessing Officer to record objective satisfaction, after examining the assessee's accounts, that the assessee's own disallowance of expenditure relating to exempt income is incorrect before applying Rule 8D. General observations about mixed funds, insufficient details, or the amount of exempt income do not establish the required account-based dissatisfaction. Without recorded satisfaction meeting this statutory standard, Rule 8D cannot support a further disallowance and the assessee's suo motu disallowance must be accepted. Case-Laws Income Tax Mon, 30 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=472658