https://www.taxtmi.com/caselaws?id=356231 The Court dismissed the appeal challenging the disallowance of expenses under Section 14A of the Income Tax Act, 1961 for Assessment Year 2009-10. The Court upheld the Tribunal's decision to enhance the disallowance from 1% to 5% of the dividend income earned as expenditure to earn exempted income. It was established that if the Assessee has its own funds, no disallowance of interest payment can be made under Section 14A of the Act. The Court found the 5% disallowance of expenditure to be reasonable and concluded that no substantial question of law arose, thus dismissing the appeal without costs. en-us Wed, 14 Feb 2018 00:00:00 +0530 Tue, 27 Feb 2018 07:13:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=356231 The Court dismissed the appeal challenging the disallowance of expenses under Section 14A of the Income Tax Act, 1961 for Assessment Year 2009-10. The Court upheld the Tribunal's decision to enhance the disallowance from 1% to 5% of the dividend income earned as expenditure to earn exempted income. It was established that if the Assessee has its own funds, no disallowance of interest payment can be made under Section 14A of the Act. The Court found the 5% disallowance of expenditure to be reasonable and concluded that no substantial question of law arose, thus dismissing the appeal without costs. Case-Laws Income Tax Wed, 14 Feb 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=356231