Tribunal held that where assessee had sufficient own fund to finance investment in tax free bonds and there was no nexus between interest bearing funds and investment made in tax free bonds, exemption claimed on interest income could not have been disallowed. (AY.1997 -98)
Standard Chartered Bank v. JCIT (2019) 177 ITD 139 / 200 TTJ 774T 178 DTR 201(Mum) (Trib.)
S. 14A : Disallowance of expenditure – Exempt income – Investment in tax free bonds – No nexus between interest bearing funds and investment made in tax free bonds- Exemption cannot be denied. [S. 10(15)(iv)]