Tribunal directed the Assessing Officer to re-compute expenses disallowance under rule 8D after considering only those investments which had yielded exempt income during year. When the interest free funds exceeded the investment made. Interest disallowance cannot be made. (AY. 2012-13)
K. Raheja Corp. (P.) Ltd. v. DCIT (2021) 190 ITD 749 (Mum.)(Trib.)
S. 14A : Disallowance of expenditure-Exempt income-Expenses in respect of investments yielded income can only be disallowed-Matter remanded-Interest free funds exceeded the investment made-Interest disallowance cannot be made. [R. 8D]