Disallowance of interest incurred on exempt income
This query is : Resolved
Dhiraj kumar
(Querist)
16 May 2013
Dear Expert,
My client's Interest Income has been disallowed because the loan which he has taken was utilised for purchase of shares.Since dividend that is derived from Shares is exempt.
Expenses incurred on Exempt income could not be claimed as deduction.
Is this Right?If there is any Case or Supreme Court Decision,please also tell us?
Waiting for Prompt Response!
Thanks In Advance
Best Regards
Dhiraj Kumar
My client's Interest Income has been disallowed because the loan which he has taken was utilised for purchase of shares.Since dividend that is derived from Shares is exempt.
Expenses incurred on Exempt income could not be claimed as deduction.
Is this Right?If there is any Case or Supreme Court Decision,please also tell us?
Waiting for Prompt Response!
Thanks In Advance
Best Regards
Dhiraj Kumar
16 May 2013
Disallowance is correct. Refer section 14A of the Income tax Act,1961.
Citation:- Godrej & Boyce.... Vs. DCIT 328 ITR 81 (Bom).
Citation:- Godrej & Boyce.... Vs. DCIT 328 ITR 81 (Bom).
Dhiraj kumar
(Querist)
16 May 2013
Thanks Sir
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