The assessee received a dividend which was claimed exempt under section 10(34). The AO had made an addition under section 14A on account of interest expenditure by resorting to rule 8D(2)(ii). On the revenue’s appeal, ITAT held that as the assessee’s own funds were much higher than investments that yield exempt income, CIT(A) had rightly deleted the addition on account of interest expenditure under section 14A read with rule 8D(2)(ii). [AY. 2009-10, 2012-13]