Tribunal held that the Assessing Officer at the first instance should have examined the correctness of the statement made by the assessee that no expenses were incurred for earning the exempt income during the year and only if he was not satisfied on this account after making reference to the accounts, was he entitled to adopt the method under rule 8D of the Income-tax Rules, 1962. The disallowance under section 14A was not sustainable. (AY. 2013-14)
Vinay Bhasin v. ACIT (2020) 83 ITR 78 (SN) (Delhi)(Trib.)
S. 14A : Disallowance of expenditure-Exempt income-Assessing Officer should examine correctness of claim that no expenses were incurred after making reference to Account-Without recording the dissatisfaction no disallowance can be made. [S. 10(34), R.8D ]