https://www.taxtmi.com/caselaws?id=183032 The appeal was against the disallowance of interest debited to the profit and loss account for investments made for earning exempt dividend income. The Assessing Officer disallowed a pro rata interest amount, but the Tribunal found that the investments were made from internal accruals, not borrowed funds, leading to the deletion of the addition of notional interest under Section 14A. The Tribunal emphasized that unless proven, no adhoc disallowance can be made. The appeal of the assessee was allowed based on the lack of evidence showing borrowed funds were used for investments. en-us Wed, 14 Dec 2011 00:00:00 +0530 Thu, 26 May 2016 15:30:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=183032 The appeal was against the disallowance of interest debited to the profit and loss account for investments made for earning exempt dividend income. The Assessing Officer disallowed a pro rata interest amount, but the Tribunal found that the investments were made from internal accruals, not borrowed funds, leading to the deletion of the addition of notional interest under Section 14A. The Tribunal emphasized that unless proven, no adhoc disallowance can be made. The appeal of the assessee was allowed based on the lack of evidence showing borrowed funds were used for investments. Case-Laws Income Tax Wed, 14 Dec 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=183032