https://www.taxtmi.com/caselaws?id=470914 Interest under Section 234B is mandatory and consequential, requiring recomputation when effect is given to appellate relief. Where interest-free funds exceed investments and advances, no interest disallowance arises under Rule 8D(2)(ii); where no exempt income is earned, no administrative expenditure disallowance arises under Rule 8D(2)(iii) read with Section 14A. Interest-free funds exceeding advances to associated enterprises support the presumption that those advances came from such funds, eliminating interest disallowance under Section 36(1)(iii), regardless of whether fresh advances demonstrate business purpose. Consequently, exempt-income and associated-enterprise advance disallowances are removed, while Section 234B interest remains subject to recomputation. en-us Tue, 04 Jun 2019 00:00:00 +0530 Thu, 13 Aug 2026 18:11:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=470914 Interest under Section 234B is mandatory and consequential, requiring recomputation when effect is given to appellate relief. Where interest-free funds exceed investments and advances, no interest disallowance arises under Rule 8D(2)(ii); where no exempt income is earned, no administrative expenditure disallowance arises under Rule 8D(2)(iii) read with Section 14A. Interest-free funds exceeding advances to associated enterprises support the presumption that those advances came from such funds, eliminating interest disallowance under Section 36(1)(iii), regardless of whether fresh advances demonstrate business purpose. Consequently, exempt-income and associated-enterprise advance disallowances are removed, while Section 234B interest remains subject to recomputation. Case-Laws Income Tax Tue, 04 Jun 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=470914