Held that the expenditure by way of interest paid by the assessee would be after reducing the taxable income earned during the financial year. Therefore, the Assessing Officer was to work out the disallowance under section 14A read with rule 8D of the Income-tax Rules, 1962 on the basis of the net interest under rule 8D(2)(ii) of the Act. (AY. 2014-15)
Bothra Financial Services v. ITO (2022) 100 ITR 452 (Delhi)(Trib.)
S. 14A : Disallowance of expenditure-Exempt income-Interest-Disallowance to be worked out on basis of net interest. [S. 8D(2)(ii)]