https://www.taxtmi.com/caselaws?id=783300 The ITAT Mumbai allowed the assessee's appeal by deleting the disallowance made under s.14A r.w.r. 8D. The assessee had already made a suo motu disallowance of 0.2% of investments. The Tribunal held that, since the assessee's interest-free own funds (share capital and reserves) exceeded the value of the investments generating exempt income, a legal presumption arises that such investments were made out of interest-free funds. Consequently, no further interest disallowance under s.14A was warranted, and the addition made by the AO was unsustainable. en-us Thu, 27 Nov 2025 00:00:00 +0530 Sat, 13 Dec 2025 08:28:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=783300 The ITAT Mumbai allowed the assessee's appeal by deleting the disallowance made under s.14A r.w.r. 8D. The assessee had already made a suo motu disallowance of 0.2% of investments. The Tribunal held that, since the assessee's interest-free own funds (share capital and reserves) exceeded the value of the investments generating exempt income, a legal presumption arises that such investments were made out of interest-free funds. Consequently, no further interest disallowance under s.14A was warranted, and the addition made by the AO was unsustainable. Case-Laws Income Tax Thu, 27 Nov 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=783300