https://www.taxtmi.com/caselaws?id=120454 The Tribunal upheld the order of the CIT(A), confirming the disallowance of interest expenses under section 14A of the Income-tax Act, 1961, amounting to Rs. 16,23,24,000. The disallowance was attributed to the earning of exempt dividend income and proportionately allocated based on the total interest expenses. The Tribunal found a clear nexus between the borrowed funds and investment in shares yielding exempt dividend income, affirming that the conditions for disallowance were met. Additionally, it held that disallowance under section 14A applies even if the dividend income is classified as business income or income from other sources. en-us Tue, 29 Jul 2008 00:00:00 +0530 Fri, 20 Jul 2012 11:00:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=120454 The Tribunal upheld the order of the CIT(A), confirming the disallowance of interest expenses under section 14A of the Income-tax Act, 1961, amounting to Rs. 16,23,24,000. The disallowance was attributed to the earning of exempt dividend income and proportionately allocated based on the total interest expenses. The Tribunal found a clear nexus between the borrowed funds and investment in shares yielding exempt dividend income, affirming that the conditions for disallowance were met. Additionally, it held that disallowance under section 14A applies even if the dividend income is classified as business income or income from other sources. Case-Laws Income Tax Tue, 29 Jul 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=120454