https://www.taxtmi.com/caselaws?id=368623 Education cess was treated as outside the scope of disallowance under section 40(a)(ii) because the provision refers to tax and omits cess. Interest disallowance on borrowed funds was restricted to the amount shown on the facts to have been diverted for subsidiary investments or to earn exempt income, reflecting the section 14A principle that only expenditure relatable to exempt income is denied. Capital expenditure linked to mining rights could be deducted against sale proceeds only to the extent supported by the record, while unsupported miscellaneous capital items were excluded. Prior period expenses were not disallowed where they represented routine business liabilities or rectification entries that crystallised during the relevant year. en-us Tue, 31 Jul 2018 00:00:00 +0530 Fri, 13 Mar 2026 14:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=368623 Education cess was treated as outside the scope of disallowance under section 40(a)(ii) because the provision refers to tax and omits cess. Interest disallowance on borrowed funds was restricted to the amount shown on the facts to have been diverted for subsidiary investments or to earn exempt income, reflecting the section 14A principle that only expenditure relatable to exempt income is denied. Capital expenditure linked to mining rights could be deducted against sale proceeds only to the extent supported by the record, while unsupported miscellaneous capital items were excluded. Prior period expenses were not disallowed where they represented routine business liabilities or rectification entries that crystallised during the relevant year. Case-Laws Income Tax Tue, 31 Jul 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=368623