Held that where Assessing Officer failed to record its satisfaction with regard to claim of assessee that it had incurred any expenses in earning exempt income the disallowance under section 14A by invoking rule 8D made by Assessing Officer was unjustified, however, disallowance to extent of Rs. 1.61 lakhs which was proposed by assessee itself was up held. (AY. 2009-10)
Essilor India (P) Ltd v. Dy. CIT (2022) 286 Taxman 385 (Karn.)(HC)
S.14A : Disallowance of expenditure-Exempt income-Failure to record satisfaction-Invoking rule 8D is not justified-Disallowance proposed by the assessee is affirmed [R. 8D]