The Tribunal held that, the AO has mechanically applied the formula without bringing the basic facts i.e. amount of expenditure incurred for earning exempt income. Accordingly the matter remanded to the AO . (AY. 2007 – 2008)
Oricon Enterprises Ltd. v. ACIT (2018) 171 ITD 231 / 67 ITR 433(Mum) (Trib.)
S. 14A : Disallowance of expenditure – Exempt income – Disallowance cannot made as without bringing basic fact that expenditure actually incurred to earn exempt income- Matter remanded to the AO. [ R.8D( 2) (ii) ]