https://www.taxtmi.com/caselaws?id=303268 Section 14A disallowance was considered in relation to investments made as share application money that produce only exempt income. The legal reasoning follows the view that disallowance under Section 14A must be linked to expenses proportionate to the earning of exempt income, applying the actual income earning test from precedent. Consequently, where an investment yields only exempt income, any expense disallowance requires a demonstrated nexus and proportionate allocation to that exempt income. The text records notice issued consistent with these legal propositions. en-us Mon, 07 Feb 2022 00:00:00 +0530 Tue, 10 Feb 2026 10:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=303268 Section 14A disallowance was considered in relation to investments made as share application money that produce only exempt income. The legal reasoning follows the view that disallowance under Section 14A must be linked to expenses proportionate to the earning of exempt income, applying the actual income earning test from precedent. Consequently, where an investment yields only exempt income, any expense disallowance requires a demonstrated nexus and proportionate allocation to that exempt income. The text records notice issued consistent with these legal propositions. Case-Laws Income Tax Mon, 07 Feb 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=303268