https://www.taxtmi.com/caselaws?id=348464 Section 14A interest disallowance was upheld only where a nexus with borrowed funds exists; on the finding that investments came from land-sale proceeds and not borrowings, the interest component under Rule 8D(2)(ii) remained deleted. For Rule 8D(2)(iii), the administrative disallowance had to be recomputed by considering only investments that actually yielded exempt income during the year, following the principle applied in Vireet Investments. The reference to the Departmental Valuation Officer for capital-gains valuation was held invalid where the statutory basis for such reference was absent, so the addition for understatement of capital gains was deleted. en-us Wed, 13 Sep 2017 00:00:00 +0530 Fri, 22 Sep 2017 06:49:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=348464 Section 14A interest disallowance was upheld only where a nexus with borrowed funds exists; on the finding that investments came from land-sale proceeds and not borrowings, the interest component under Rule 8D(2)(ii) remained deleted. For Rule 8D(2)(iii), the administrative disallowance had to be recomputed by considering only investments that actually yielded exempt income during the year, following the principle applied in Vireet Investments. The reference to the Departmental Valuation Officer for capital-gains valuation was held invalid where the statutory basis for such reference was absent, so the addition for understatement of capital gains was deleted. Case-Laws Income Tax Wed, 13 Sep 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=348464