Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

banner_ad

section 14A of I.T.Act.

This query is : Resolved

Share Report Follow Query Ask a Query

CA Sanjay Baheti

CA Sanjay Baheti (Querist)
Follow

01 September 2010 A proprietorship firm has 900 lac capital and has invested in partnership firms 450 lacs and has raised unsecured loans of 200 lacs. The interest paid on unsecured loans is claimed as expenditure against trading profit on sale/purchase of land.The investment in partnership firms of 450 lacs , the profit share is claimed as exempt. The A.O. is insisting to disallow interest on unsecured loans u/s 14A.Is he correct when sufficient capital is there.

Aditya Maheshwari

Aditya Maheshwari (Expert)
Follow

01 September 2010 See the investment made by the company in the firm is a interest bearing asset and no exempt income is generated by virtue of being invested in the firm as u are getting interest on capital.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

CCI Pro

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

CCI Pro

Meet our CAclubindia PRO Members

Pro Member Prabhakar Manjunath

Prabhakar Manjunath

Pro Member Gourab Majumder

Gourab Majumder

Pro Member madhu Reddy

madhu Reddy

Pro Member Rubal Singhal

Rubal Singhal

Pro Member tsrandcompany@gmail.com

tsrandcompany@gmail.com

Follow us

add to google news

Answer Query

Quick Links

Browse by Category

Latest Job Openings

View all

07 June 2026

Tax Associate

Rajkumar Jain & Co.

Ahmedabad

Graduate (Any)

View Details

ARTICLESHIP 17 May 2026

CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details

ARTICLESHIP 14 May 2026

CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details

14 May 2026

Financial Analyst - Remote Finance Expert

HiringBridge

Ahmedabad

CA

View Details

04 June 2026

Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details

18 May 2026

MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details

26 May 2026

Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details

14 May 2026

ICSI Trainees for 21 Months and Semi-Qualified CS

CMNITY HIRE

New Delhi

Others

View Details