https://www.taxtmi.com/caselaws?id=258747 The High Court found the Tribunal's decision erroneous in deleting an addition under section 36(I)(iii) of the Income Tax Act, 1961, due to the lack of explanation on how interest paid for earning exempt income could be an allowable expenditure. Emphasizing the need for a clear nexus between borrowed funds and investments, the Court upheld the Assessing Officer's refusal of deduction, remanding the matter for further examination to establish a correlation between funds utilized and investments. The Court's decision aligned with a previous judgment supporting disallowances under section 14A, directing expedited assessment due to the case's age. en-us Wed, 08 Apr 2015 00:00:00 +0530 Sun, 19 Apr 2015 22:38:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=258747 The High Court found the Tribunal's decision erroneous in deleting an addition under section 36(I)(iii) of the Income Tax Act, 1961, due to the lack of explanation on how interest paid for earning exempt income could be an allowable expenditure. Emphasizing the need for a clear nexus between borrowed funds and investments, the Court upheld the Assessing Officer's refusal of deduction, remanding the matter for further examination to establish a correlation between funds utilized and investments. The Court's decision aligned with a previous judgment supporting disallowances under section 14A, directing expedited assessment due to the case's age. Case-Laws Income Tax Wed, 08 Apr 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=258747