Saturday, 26 September 2015

Proportionate interest disallowable u/s 14A even if bank's current deposits exceed tax-free investme

IT : Interest liable to be disallowed u/s 14A on proportionate basis even if assessee-bank's current deposits exceed its investments yielding tax-free returns. Assessee-bank cannot escape disallowance of interest u/s 14A by taking the plea that its interest-free funds (own funds or current account deposits) exceeded the amount of its tax-free income yielding investments in shares and mutual funds

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