Held that expenditure towards professional charges and rent payment were incurred is allowable as revenue expenditure. Interest on borrowed capital matter remanded. Tribunal also held that while computing disallowance under section 14A only average value of such investment from which yielded exempt income is to be considered. (AY. 2014-15)
Biological E Ltd. v. DCIT (2021) 91 ITR 201 / (2022) 192 ITD 475 (Hyd.)(Trib.)
S. 37(1) : Business expenditure-Weighted deduction-R&D facility-Allowable as revenue expenditure-Interest on borrowed amount-Matter remanded-Exempt income-While computing disallowance under section 14A only average value of such investment from which yielded exempt income is to be considered. [S. 14A, 35(2AB), 36(1)(iii), R. 8D(2)(iii)]