2014 (1) TMI 920 - ITAT AHMEDABAD - Income Tax

Head Note / Extract:
Deletion made u/s 14A of the Act – Nexus between the amounts incurred by the assessee for earning the tax free income – Held that:- CIT(A) was of the view that no nexus has been established by the AO with the amount incurred by the Assessee for earning the tax free income - the interest income was more than interest expense and thus the Assessee was having net positive interest income and therefore the same cannot be considered for disallowance – The appellant is also having net positive interest income which cannot be part for the disallowance - the administrative expenses to be 0.5% of the average investments and disallowed the same - the Revenue could not bring any material on record to controvert the findings of CIT(A) – there was no reason to interfere the order of CIT(A) – Decided against Revenue.