https://www.taxtmi.com/caselaws?id=389049 Disallowance under section 14A read with Rule 8D was remanded for fresh verification of whether exempt dividend investments were made out of mixed or interest-free funds, with the Assessing Officer directed to examine cash flow and fund availability. The disallowance under section 36(1)(iii) was upheld because the interest-bearing borrowings were found to have been diverted for non-business use by a partner, and the cash method of accounting did not cure the lack of business purpose. Interest earned on bank deposits was held taxable as business income, since the assessee's money-lending and investment activity treated such funds as stock-in-trade deployed in the course of business. en-us Tue, 19 Nov 2019 00:00:00 +0530 Fri, 29 Nov 2019 11:18:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=389049 Disallowance under section 14A read with Rule 8D was remanded for fresh verification of whether exempt dividend investments were made out of mixed or interest-free funds, with the Assessing Officer directed to examine cash flow and fund availability. The disallowance under section 36(1)(iii) was upheld because the interest-bearing borrowings were found to have been diverted for non-business use by a partner, and the cash method of accounting did not cure the lack of business purpose. Interest earned on bank deposits was held taxable as business income, since the assessee's money-lending and investment activity treated such funds as stock-in-trade deployed in the course of business. Case-Laws Income Tax Tue, 19 Nov 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=389049