[aaykarbhavan] No disallowance of interest on loan when assessee had enough interest free funds to invest in tax free schemes

No disallowance of interest on loan when assessee had enough interest free funds to invest in tax free schemes

June 24, 2014[2014] 45 taxmann.com 427 (Gujarat)

IT : Where assessee had sufficient interest free fund available with it to be invested in mutual funds, deduction of interest expenditure on borrowed fund could not be disallowed under section 36(1)(iii)

IT : Where assessee had sufficient profit and interest free funds to be invested in mutual fund from where exempted income was generated and nothing had been charged by bank except STT, disallowance under section 14A was to be restricted to amount of STT

 

Regards

Prarthana Jalan

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Posted by: Prarthana Jalan <prarthanajalan@ymail.com>

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