https://www.taxtmi.com/caselaws?id=788121 The note addresses two tax issues: (i) the correctness of deleting a disallowance for expenditure relating to exempt income where dividend was treated as taxable and a coordinate-bench precedent on computing disallowance under the rule was applied; the appellate deletion of the disallowance is sustained. (ii) the correctness of deleting a disallowance under the actual-payment requirement for interest payable to a cooperative bank; where the bank appears in the RBI Second Schedule it qualifies as a scheduled bank and interest remains subject to the actual-payment rule, and capitalization of interest to work-in-progress only defers deduction and does not satisfy the payment requirement; the disallowance is restored. en-us Fri, 13 Mar 2026 00:00:00 +0530 Tue, 17 Mar 2026 08:23:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=788121 The note addresses two tax issues: (i) the correctness of deleting a disallowance for expenditure relating to exempt income where dividend was treated as taxable and a coordinate-bench precedent on computing disallowance under the rule was applied; the appellate deletion of the disallowance is sustained. (ii) the correctness of deleting a disallowance under the actual-payment requirement for interest payable to a cooperative bank; where the bank appears in the RBI Second Schedule it qualifies as a scheduled bank and interest remains subject to the actual-payment rule, and capitalization of interest to work-in-progress only defers deduction and does not satisfy the payment requirement; the disallowance is restored. Case-Laws Income Tax Fri, 13 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=788121