Held that interest expenditure not incurred no disallowance cannot be made. Other Expenses at 0.5 Per Cent. of average value of investments only investments which earned exempt income to be considered for computing average value of investments. (AY.2003-04 to 2005-06, 2009-10)
ACIT v. Investment Trust of India Ltd. (2021) 88 ITR 566/ 211 TTJ 777 / 203 DTR 289 (Chennai) (Trib.) Dy. CIT v. HFCL Infotel Ltd. (2021) 88 ITR 566/ 211 TTJ 777/ 203 DTR 289 (Chennai)(Trib.)
S. 14A : Disallowance of expenditure-Exempt income-Interest-Expenditure not incurred-No disallowance cannot be made-Other Expenses at 0.5 Per Cent. of average value of investments – Only investments which earned exempt income to be considered for computing average value of investments. [R. 8D]