https://www.taxtmi.com/caselaws?id=117606 The tribunal partly allowed the appeal challenging the disallowance of interest and administrative expenses for the assessment year 2001-02. It directed the Assessing Officer to verify the direct nexus of interest with income earned on debentures and shares before allowing the expenses. The tribunal upheld the invocation of section 14A for disallowing interest against dividend income. It instructed the Assessing Officer to determine the disallowance of interest based on a scientific basis. Additionally, it directed consideration of adding interest to the cost of shares sold if a direct nexus between interest-bearing borrowed funds and share investments was established. The tribunal dismissed the initiation of penalty proceedings under section 271(1)(c) as premature. en-us Thu, 10 Mar 2005 00:00:00 +0530 Mon, 25 Jun 2012 13:18:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=117606 The tribunal partly allowed the appeal challenging the disallowance of interest and administrative expenses for the assessment year 2001-02. It directed the Assessing Officer to verify the direct nexus of interest with income earned on debentures and shares before allowing the expenses. The tribunal upheld the invocation of section 14A for disallowing interest against dividend income. It instructed the Assessing Officer to determine the disallowance of interest based on a scientific basis. Additionally, it directed consideration of adding interest to the cost of shares sold if a direct nexus between interest-bearing borrowed funds and share investments was established. The tribunal dismissed the initiation of penalty proceedings under section 271(1)(c) as premature. Case-Laws Income Tax Thu, 10 Mar 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=117606