https://www.taxtmi.com/caselaws?id=185813 The ITAT allowed the appeal of the appellant, an Individual engaged in trading of shares, concerning the disallowance of interest expenses u/s. 14A on borrowed funds used for investing in mutual funds. The ITAT held that the interest incurred for purchasing shares and units of mutual funds was allowable as a deduction u/s. 36(1)(iii) as the appellant's activities were business-related. It emphasized that if borrowed funds were used for business purposes, the interest paid should be considered for the purpose of business, directing the deletion of the disallowance made by the A.O. en-us Fri, 30 Nov 2012 00:00:00 +0530 Mon, 29 Aug 2016 16:30:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=185813 The ITAT allowed the appeal of the appellant, an Individual engaged in trading of shares, concerning the disallowance of interest expenses u/s. 14A on borrowed funds used for investing in mutual funds. The ITAT held that the interest incurred for purchasing shares and units of mutual funds was allowable as a deduction u/s. 36(1)(iii) as the appellant's activities were business-related. It emphasized that if borrowed funds were used for business purposes, the interest paid should be considered for the purpose of business, directing the deletion of the disallowance made by the A.O. Case-Laws Income Tax Fri, 30 Nov 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=185813