https://www.taxtmi.com/caselaws?id=280961 ITAT Mumbai held that exemption on interest under section 10(23G) was to be computed on the assessee's claim without further artificial apportionment where the lending activity was supported by identifiable funds and the relevant interest cost was already embedded in that activity. It also held that dividend income exempt under section 10(33) could not be reduced on the assumption that borrowed funds were used for the investments when substantial interest-free funds were available. Further, interest and penal interest on non-performing assets relating to earlier non-taxable years could not be brought to tax in the current year merely because they were credited later. Relief was granted to the assessee on all substantive issues. en-us Wed, 14 Aug 2013 00:00:00 +0530 Tue, 28 May 2019 15:11:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=280961 ITAT Mumbai held that exemption on interest under section 10(23G) was to be computed on the assessee's claim without further artificial apportionment where the lending activity was supported by identifiable funds and the relevant interest cost was already embedded in that activity. It also held that dividend income exempt under section 10(33) could not be reduced on the assumption that borrowed funds were used for the investments when substantial interest-free funds were available. Further, interest and penal interest on non-performing assets relating to earlier non-taxable years could not be brought to tax in the current year merely because they were credited later. Relief was granted to the assessee on all substantive issues. Case-Laws Income Tax Wed, 14 Aug 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=280961