Assessee had not claimed any expenditure in relation to exempt income, onus is on Assessing Officer

IT : Where assessee had not claimed any expenditure in relation to exempt income, onus is on Assessing Officer to prove that out of expenditure incurred under various heads, some were related to earning of exempt income and not only this he has also to give basis of such calculation
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[2014] 52 taxmann.com 94 (Mumbai - Trib.)
IN THE ITAT MUMBAI BENCH 'I'
Assistant Commissioner of Income-tax
v.
Iqbal M. Chagala*
VIJAY PAL RAO, JUDICIAL MEMBER
AND RAJENDRA, ACCOUNTANT MEMBER
IT APPEAL NO. 877 (MUM.) OF 2013
[ASSESSMENT YEAR 2009-10]
JULY  30, 2014
Section 14A of the Income-tax Act, 1961, read with rule 8D of the Income-tax Rules, 1962 - Expenditure incurred in relation to exempt income not includible in total income (Conditions precedent) - Assessment year 2009-10 - Whether where assessee had not claimed any expenditure in relation to exempt income, onus is on Assessing Officer to prove that out of expenditure incurred under various heads, some were related to earning of exempt income and not only this he has also to give basis of such calculation - Held, yes - Whether provisions of rule 8D cannot and should not be applied in a mechanical way and facts of case have to be analyzed before invoking them - Held, yes [Para 7] [In favour of assessee]