Tribunal\u00a0 held that\u00a0 there were no borrowings made by the assessee in order to make payment of interest thereon. The interest paid by the assessee had no nexus or bearing with the investment in mutual funds and shares. The existence of the dispute and the copy of the order of the Commission was brought to the notice of the Commissioner (Appeals) and he had not made any disallowance under section\u00a014A\u00a0of the Act. Hence, there could not be any proportionate disallowance of interest in terms of second limb of rule\u00a08D(2)\u00a0of the Rules. Accordingly, the disallowance of interest was hereby deleted. As regards administrative expenses disallowance is attracted. \u00a0The period during which lockdown was in force was to be excluded for the purpose of the 90-day time limit set out in rule\u00a034(5)\u00a0of the\u00a0Income-tax (Appellate Tribunal) Rules, 1963\u00a0(AY.2011-12).<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 14A : Disallowance of expenditure-Exempt income-Interest has no nexus with investment in mutual funds and shares-Disallowance not attracted-Administrative expenses-Disallowance is attracted. [R. 8D, ITAT R. 34(5)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-18040","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-4GY","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/18040","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=18040"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/18040\/revisions"}],"predecessor-version":[{"id":18041,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/18040\/revisions\/18041"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=18040"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=18040"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=18040"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}