https://www.taxtmi.com/caselaws?id=772276 The ITAT Chandigarh ruled in favor of the assessee on two key issues. First, regarding disallowance under Section 14A read with Rule 8D, the Tribunal found that since the assessee had already made suo-moto disallowance of expenditure, the AO's additional disallowance was irrelevant and bad in law. The AO failed to establish satisfaction regarding incorrectness of the assessee's claim. Second, concerning interest disallowance under Section 36(1)(iii), the Tribunal upheld CIT(A)'s deletion of the disallowance, finding that sufficient interest-free funds were available for investments, following the Bright Enterprises precedent. Revenue's appeal was dismissed. en-us Tue, 20 May 2025 00:00:00 +0530 Tue, 03 Jun 2025 14:41:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=772276 The ITAT Chandigarh ruled in favor of the assessee on two key issues. First, regarding disallowance under Section 14A read with Rule 8D, the Tribunal found that since the assessee had already made suo-moto disallowance of expenditure, the AO's additional disallowance was irrelevant and bad in law. The AO failed to establish satisfaction regarding incorrectness of the assessee's claim. Second, concerning interest disallowance under Section 36(1)(iii), the Tribunal upheld CIT(A)'s deletion of the disallowance, finding that sufficient interest-free funds were available for investments, following the Bright Enterprises precedent. Revenue's appeal was dismissed. Case-Laws Income Tax Tue, 20 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=772276