https://www.taxtmi.com/caselaws?id=395947 Disallowance under section 14A read with rule 8D was noted to be unsustainable for demat charges attributed to share broking business, and interest disallowance was negatived where own interest-free funds exceeded investments, applying the presumption that investments are made from own funds. The material also states that disallowance under section 14A cannot exceed the exempt income and that the assessee's suo motu disallowance limited the adjustment. On client referral fees, the prior-year percentage method was described as arbitrary; the proper inquiry is the genuineness of the payments, so the issue was restored for factual verification after hearing the assessee. en-us Fri, 12 Jun 2020 00:00:00 +0530 Wed, 06 Nov 2024 10:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=395947 Disallowance under section 14A read with rule 8D was noted to be unsustainable for demat charges attributed to share broking business, and interest disallowance was negatived where own interest-free funds exceeded investments, applying the presumption that investments are made from own funds. The material also states that disallowance under section 14A cannot exceed the exempt income and that the assessee's suo motu disallowance limited the adjustment. On client referral fees, the prior-year percentage method was described as arbitrary; the proper inquiry is the genuineness of the payments, so the issue was restored for factual verification after hearing the assessee. Case-Laws Income Tax Fri, 12 Jun 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=395947