https://www.taxtmi.com/caselaws?id=445693 ITAT Rajkot ruled in favor of the assessee regarding disallowance under section 14A. The assessee had paid substantial interest on unsecured loans while earning exempt income. The AO made additions claiming mixed funds usage, but CIT(A) restricted disallowance to exempt income amount. ITAT followed Gujarat HC precedents in Hitachi Home and Gujarat Fluoro Chemicals cases, holding that when interest-free funds exceed investments yielding exempt income, no section 14A disallowance is justified, as interest-bearing funds were not used for such investments. en-us Fri, 10 Nov 2023 00:00:00 +0530 Thu, 16 Nov 2023 10:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445693 ITAT Rajkot ruled in favor of the assessee regarding disallowance under section 14A. The assessee had paid substantial interest on unsecured loans while earning exempt income. The AO made additions claiming mixed funds usage, but CIT(A) restricted disallowance to exempt income amount. ITAT followed Gujarat HC precedents in Hitachi Home and Gujarat Fluoro Chemicals cases, holding that when interest-free funds exceed investments yielding exempt income, no section 14A disallowance is justified, as interest-bearing funds were not used for such investments. Case-Laws Income Tax Fri, 10 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445693