https://www.taxtmi.com/caselaws?id=463922 ITAT set aside the AO's disallowance of interest under s.14A and directed deletion; allowed allocation of Rs.2,89,107 administrative expenses to exempt income while rejecting broader Revenue challenge, and held expenses could not be disallowed against the declared capital gain. Education cess paid is deductible. Profit on sale of deep-discount bonds and adoption of changed accounting were accepted in assessee's favour. No diversion under s.36(1)(iii) as own funds exceeded interest-free advances. Losses on sale of shares were upheld. Expenses on the proposed power project were disallowed as not incurred for the existing business. Overall assessee's appeal partly allowed; revenue's appeal dismissed. en-us Thu, 24 Feb 2022 00:00:00 +0530 Mon, 22 Sep 2025 12:59:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=463922 ITAT set aside the AO's disallowance of interest under s.14A and directed deletion; allowed allocation of Rs.2,89,107 administrative expenses to exempt income while rejecting broader Revenue challenge, and held expenses could not be disallowed against the declared capital gain. Education cess paid is deductible. Profit on sale of deep-discount bonds and adoption of changed accounting were accepted in assessee's favour. No diversion under s.36(1)(iii) as own funds exceeded interest-free advances. Losses on sale of shares were upheld. Expenses on the proposed power project were disallowed as not incurred for the existing business. Overall assessee's appeal partly allowed; revenue's appeal dismissed. Case-Laws Income Tax Thu, 24 Feb 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=463922