https://www.taxtmi.com/caselaws?id=278432 The appeals against disallowance under section 14A of the Income Tax Act for the assessment years 2006-07 and 2007-08 were allowed in part. The ITAT held that Rule 8D cannot be applied and directed the AO to delete the disallowance of interest while computing under section 14A read with rule 8D. The disallowance was found unjustifiable if non-interest bearing funds exceed investments in tax-free securities, following precedents like the Godrej and Boyce Mfg. Co. Ltd., Goetze India Ltd., HDFC Bank Ltd., TATA Industries Ltd., and Pruthvi cases. en-us Wed, 24 Aug 2016 00:00:00 +0530 Sat, 02 Feb 2019 08:03:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=278432 The appeals against disallowance under section 14A of the Income Tax Act for the assessment years 2006-07 and 2007-08 were allowed in part. The ITAT held that Rule 8D cannot be applied and directed the AO to delete the disallowance of interest while computing under section 14A read with rule 8D. The disallowance was found unjustifiable if non-interest bearing funds exceed investments in tax-free securities, following precedents like the Godrej and Boyce Mfg. Co. Ltd., Goetze India Ltd., HDFC Bank Ltd., TATA Industries Ltd., and Pruthvi cases. Case-Laws Income Tax Wed, 24 Aug 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=278432