https://www.taxtmi.com/caselaws?id=169979 ITAT Hyderabad dealt with several banking-tax issues and applied earlier coordinate-bench rulings. It deleted section 14A interest disallowance where investments were from non-interest-bearing funds, while sustaining a limited 2% disallowance for exempt-income related expenditure. Broken period interest on securities was held deductible as revenue expenditure, amounts moved from blocked accounts to capital reserve were not treated as income, and unrealised interest on NPAs reversed by the assessee was allowed as a deduction. By contrast, section 35D deduction was denied to a banking company and a provision on standard assets was held outside section 36(1)(viia). Depreciation on held-to-maturity investments was allowed, and recovery of earlier written-off bad debts was remanded for verification. en-us Tue, 30 Apr 2013 00:00:00 +0530 Tue, 12 May 2015 16:52:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=169979 ITAT Hyderabad dealt with several banking-tax issues and applied earlier coordinate-bench rulings. It deleted section 14A interest disallowance where investments were from non-interest-bearing funds, while sustaining a limited 2% disallowance for exempt-income related expenditure. Broken period interest on securities was held deductible as revenue expenditure, amounts moved from blocked accounts to capital reserve were not treated as income, and unrealised interest on NPAs reversed by the assessee was allowed as a deduction. By contrast, section 35D deduction was denied to a banking company and a provision on standard assets was held outside section 36(1)(viia). Depreciation on held-to-maturity investments was allowed, and recovery of earlier written-off bad debts was remanded for verification. Case-Laws Income Tax Tue, 30 Apr 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=169979