Held that the presumption was available that the investment was made by the assessee out of its own funds and no interest-bearing funds were utilised and no expenditure was incurred in order to earn exempt income. Hence no disallowance can be made, however with respect to administrative expenses the Assessing Officer was to restrict the disallowance under rule 8D(2)(iii) of the Rules to the extent of 0.5 per cent. of the average of exempt income yielding investments.(AY. 2015-16 to 2018-19)
Aurum Platz P. Ltd. v. Dy. CIT (2023)105 ITR 615 / 225 TTJ 771 / 152 taxmann.com 85 (Mum) (Trib) Srei Infrastructure Finance Ltd. v. Asst. CIT (2023)105 ITR 371 / 154 taxmann.com 650 (Kol) (Trib)
S.14A : Disallowance of expenditure-Exempt income-Interest-Sufficient non interest bearing funds-Administrative expenses the Assessing Officer is directed to restrict the disallowance under rule 8D(2)(iii) of the Rules to the extent of 0.5 per cent. of the average of exempt income yielding investments. [S. 36(1)(iii), R. 8D(2)(iii)]