https://www.taxtmi.com/caselaws?id=465323 The ITAT Mumbai dismissed the Revenue's appeal, upholding the CIT(A)'s deletion of additions. It affirmed that ESOP-related expenditure is allowable as revenue deduction under s. 37(1), following the Tribunal's ruling in the assessee's own earlier year. On disallowance of interest under s. 14A r.w. Rule 8D(2)(ii), the ITAT endorsed the CIT(A)'s finding that the assessee's own non-interest-bearing funds (share capital and reserves) substantially exceeded the investments generating exempt income. Applying the jurisdictional HC precedent that no interest disallowance arises where own funds surpass investments, the Tribunal held that s. 14A disallowance of interest was unwarranted and sustained deletion. en-us Fri, 23 Mar 2018 00:00:00 +0530 Tue, 16 Dec 2025 18:58:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465323 The ITAT Mumbai dismissed the Revenue's appeal, upholding the CIT(A)'s deletion of additions. It affirmed that ESOP-related expenditure is allowable as revenue deduction under s. 37(1), following the Tribunal's ruling in the assessee's own earlier year. On disallowance of interest under s. 14A r.w. Rule 8D(2)(ii), the ITAT endorsed the CIT(A)'s finding that the assessee's own non-interest-bearing funds (share capital and reserves) substantially exceeded the investments generating exempt income. Applying the jurisdictional HC precedent that no interest disallowance arises where own funds surpass investments, the Tribunal held that s. 14A disallowance of interest was unwarranted and sustained deletion. Case-Laws Income Tax Fri, 23 Mar 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465323