Satisfaction of the AO and determination of Expenditure in relation to income which is not includible in total income

RELEVANT PARAGRAPH 8. We have heard the parties and have perused the material on record. As per Section 14A of the Act, no deduction shall be allowed in respect of expenditure incurred in relation to income not includible in the total income. At the outset, it would be apt to reproduce here-under, the section per se:- “14A. (1) For the purposes of computing the total income under this Chapter, no deduction shall be allowed in respect of expenditure incurred by the assessee in relation to income which does not form part of the total income under this Act (2) The AO shall determine the amo...