https://www.taxtmi.com/caselaws?id=767537 ITAT Mumbai held that no disallowance under Section 14A read with Rule 8D was warranted where the assessee borrowed money for partnership firm investment. The assessee earned taxable interest of Rs. 48,53,903 and paid interest of Rs. 41,04,638, showing net positive taxable interest income. The tribunal permitted netting off of interest income against interest expenditure, following precedent. Additionally, interest on borrowed capital invested in partnership firm was allowed under Section 36(1)(iii) as commercially expedient business transaction. The assessee's appeal was allowed. en-us Fri, 28 Feb 2025 00:00:00 +0530 Thu, 20 Mar 2025 08:21:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767537 ITAT Mumbai held that no disallowance under Section 14A read with Rule 8D was warranted where the assessee borrowed money for partnership firm investment. The assessee earned taxable interest of Rs. 48,53,903 and paid interest of Rs. 41,04,638, showing net positive taxable interest income. The tribunal permitted netting off of interest income against interest expenditure, following precedent. Additionally, interest on borrowed capital invested in partnership firm was allowed under Section 36(1)(iii) as commercially expedient business transaction. The assessee's appeal was allowed. Case-Laws Income Tax Fri, 28 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767537