https://www.taxtmi.com/caselaws?id=762528 Disallowance of expenditure relating to exempt-income investments under section 14A read with Rule 8D is unsustainable where the taxpayer's own funds exceed the relevant investments, there are no long-term borrowings, and no fresh investments were made during the year. A presumption applies that investments yielding exempt income were funded from available own funds in those circumstances. Consequently, no basis remains for attributing interest expenditure or making the related disallowance under Rule 8D, and the issue is resolved in favour of the taxpayer. en-us Fri, 29 Nov 2024 00:00:00 +0530 Mon, 02 Dec 2024 17:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762528 Disallowance of expenditure relating to exempt-income investments under section 14A read with Rule 8D is unsustainable where the taxpayer's own funds exceed the relevant investments, there are no long-term borrowings, and no fresh investments were made during the year. A presumption applies that investments yielding exempt income were funded from available own funds in those circumstances. Consequently, no basis remains for attributing interest expenditure or making the related disallowance under Rule 8D, and the issue is resolved in favour of the taxpayer. Case-Laws Income Tax Fri, 29 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762528