Dy. CIT v. Kanoria Chemicals & Industries Ltd. (2022) 215 TTJ 1003 (Kol)(Trib)

S. 14A : Disallowance of expenditure-Exempt income-Disallowance can be made only in respect of interest payments from those investments which the dividend income was earned.[R.8D(2)(iii)]

Held that the loan taken by the assessee was to a  specific purposes and the assessee had sufficient own funds in the form  of  share capital and surplus funds to make the investments. The disallowance was directed to be made only in respect of interest payments from investments which the dividend income was earned. (AY. 2012-13)