The Assessing Officer made a further disallowance under section 14A read with rule 8D in respect of exempt dividend income. The Tribunal held that the assessee possessed sufficient non-interest-bearing funds to make the investments and, following the jurisdictional High Court as well as the orders passed in the assessee’s own case for earlier years, upheld the deletion of the disallowance. (AY. 2015-16).
ITO v. V. R. Surat P. Ltd. [2023] 152 taxmann.com 679 / (2025) 129 ITR 626 (Surat)(Trib.)
S.14A: Disallowance of expenditure-Exempt income-Sufficient interest-free funds available-No disallowance warranted. [R. 8D]
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