Expenditure in relation to income not includible in total income - (New) Section 14 / (Old) Section 14A & Rule 8D

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....ng Officer's Power to Determine Disallowable Expenditure [ Section 14(2) ] • Where the Assessing Officer, having regard to the accounts of the assessee, is not satisfied with- • (a) the correctness of the claim of expenditure incurred by the assessee; or • (b) the claim made by the assessee that no expenditure has been incurred, • in relation to income which does not form part of the total income under this Act, he shall determine such amount of expenditure in accordance with any method, as may be prescribed. Method for determining amount of expenditure in relation to income not includible in total income [ Rule 14 ] • The expenditure in relation to income which does not fo....

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.... retrospectively from 1st April, 1962 and accordingly, applies in relation to the assessment year 1962-63 and subsequent assessment years Section 14A read with Rule 8D • No deduction shall be allowed for any expenditure incurred in relation to any income which is exempt from tax under section 10 of Income Tax Act. • Where the Assessing Officer, is not satisfied with - • the correctness of the claim of expenditure made by the assessee • the claim made by the assessee that no expenditure has been incurred in relation to income which is exempt under section 10, he shall determine the amount of expenditure in relation to such income. The expenditure in relation to income which ....