https://www.taxtmi.com/caselaws?id=450473 The Bombay HC upheld the Tribunal's decision disallowing interest deduction on borrowings used for share investments. The assessee claimed the expenditure was not covered by Section 14A since shares were held as trading assets for controlling interest, with dividend being incidental. The AO and Tribunal rejected this, holding that since dividend income from the investments was non-taxable, the related interest expenditure was hit by Section 14A and could not be allowed as business deduction. The HC confirmed that expenditure attributable to earning non-taxable dividend income must be disallowed under Section 14A. en-us Fri, 01 Mar 2024 00:00:00 +0530 Wed, 06 Mar 2024 09:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450473 The Bombay HC upheld the Tribunal's decision disallowing interest deduction on borrowings used for share investments. The assessee claimed the expenditure was not covered by Section 14A since shares were held as trading assets for controlling interest, with dividend being incidental. The AO and Tribunal rejected this, holding that since dividend income from the investments was non-taxable, the related interest expenditure was hit by Section 14A and could not be allowed as business deduction. The HC confirmed that expenditure attributable to earning non-taxable dividend income must be disallowed under Section 14A. Case-Laws Income Tax Fri, 01 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450473