https://www.taxtmi.com/caselaws?id=473092 Disallowance of expenditure attributable to exempt income requires cogent reasons for rejecting the taxpayer's calculation and supporting the amount disallowed. Applying a percentage of average investment value by reference to earlier assessment years, without explaining why the voluntary disallowance is inadequate, does not adequately support the disallowance. The taxpayer's explanation concerning common staff and resources must also be addressed with cogent reasons. Where adequate reasons are absent, the disallowance is unsustainable and the expenditure attributable to exempt income must be determined afresh. en-us Wed, 19 Apr 2023 00:00:00 +0530 Tue, 03 Nov 2026 18:55:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=473092 Disallowance of expenditure attributable to exempt income requires cogent reasons for rejecting the taxpayer's calculation and supporting the amount disallowed. Applying a percentage of average investment value by reference to earlier assessment years, without explaining why the voluntary disallowance is inadequate, does not adequately support the disallowance. The taxpayer's explanation concerning common staff and resources must also be addressed with cogent reasons. Where adequate reasons are absent, the disallowance is unsustainable and the expenditure attributable to exempt income must be determined afresh. Case-Laws Income Tax Wed, 19 Apr 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=473092