https://www.taxtmi.com/caselaws?id=281321 Disputed customer security deposits required reconciliation before any related interest disallowance could be sustained, so the matter was sent back for fresh adjudication. Disallowance under section 14A read with Rule 8D was found unsustainable where the assessee had sufficient own funds and no borrowed funds were shown to have been used for the investments, making mechanical application of Rule 8D impermissible. An addition based on understatement of income arising from a change in accounting policy was also deleted because the accounting changes complied with prevailing standards and could not be selectively rejected merely for adverse tax effect. en-us Mon, 31 Jul 2017 00:00:00 +0530 Fri, 14 Jun 2019 06:36:24 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=281321 Disputed customer security deposits required reconciliation before any related interest disallowance could be sustained, so the matter was sent back for fresh adjudication. Disallowance under section 14A read with Rule 8D was found unsustainable where the assessee had sufficient own funds and no borrowed funds were shown to have been used for the investments, making mechanical application of Rule 8D impermissible. An addition based on understatement of income arising from a change in accounting policy was also deleted because the accounting changes complied with prevailing standards and could not be selectively rejected merely for adverse tax effect. Case-Laws Income Tax Mon, 31 Jul 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=281321