Rule 8D Applicable only if Taxpayer’s Calculation of Expenses for Exempt Income Found Inadequate: Delhi HC

ITAT Sets Aside Assessment for AY 2009-10 Due to Jurisdictional Error u/s 153C of Income Tax Act The ITAT set aside an assessment for Assessment Year (AY) 2009-10 under Section 153C of the Income Tax Act due to a jurisdictional error. The case involved a taxpayer whose income was being assessed for a previous year, and the tribunal found that the assessment was made without proper jurisdiction. The decision emphasizes the necessity for tax authorities to follow proper procedures when issuing assessments under Section 153C, ensuring that assessments are based on clear and adequate grounds. The ruling brings attention to the legal requirement of jurisdictional correctness in the assessment process.