Assessee claimed dividend income as exempt from tax. AO disallowed the interest. CIT(A) held that share capital and reserves are more than the investment no interest expenditure could be disallowed. Order of CIT(A) is affirmed by the Tribunal. (AY. 2012-13, 2013-14)
Zaveri & Co. (P.) Ltd. v. DCIT (2020) 184 ITD 777 (Ahd.)(Trib.)
S. 14A : Disallowance of expenditure-Exempt income-Interest free funds available was far more than investment-No interest expenditure can be disallowed. [R. 8D]