https://www.taxtmi.com/caselaws?id=446665 HC held that disallowance under Section 14A read with Rule 8D cannot exceed exempt income of Rs. 35,347, making AO's disallowance of Rs. 5,06,73,874 unsustainable. ITAT correctly deleted the addition. Regarding interest expenses on loans for share purchases, HC agreed with revenue that since borrowed funds were used for business purposes and shares were sold as stock-in-trade with profits offered for tax (accepted by revenue), no disallowance was warranted. Treatment in books doesn't determine tax liability under the Act. en-us Wed, 22 Nov 2023 00:00:00 +0530 Fri, 08 Dec 2023 15:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446665 HC held that disallowance under Section 14A read with Rule 8D cannot exceed exempt income of Rs. 35,347, making AO's disallowance of Rs. 5,06,73,874 unsustainable. ITAT correctly deleted the addition. Regarding interest expenses on loans for share purchases, HC agreed with revenue that since borrowed funds were used for business purposes and shares were sold as stock-in-trade with profits offered for tax (accepted by revenue), no disallowance was warranted. Treatment in books doesn't determine tax liability under the Act. Case-Laws Income Tax Wed, 22 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446665