Tribunal held that where own funds of assessee exceed amount of investment, it is presumed that investment has been made by assessee out of its own fund without utilizing borrowed funds, and, thus, there cannot be any disallowance of interest expenses with respect to exempt dividend income earned. (AY. 2011-12)
K. B. Mehta Construction (P.) Ltd. v. DCIT (2020) 185 ITD 81 (Ahd.)(Trib.)
S. 14A : Disallowance of expenditure-Exempt income-Own funds exceed amount of investment-Interest expense incurred cannot be disallowed. [R. 8D]