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2023 (7) TMI 513 - BOMBAY HIGH COURTDisallowance u/s 14A r.w.s. Rule 8D - no exempt income earned as per assessee submission - ITAT deleting the disallowance - HELD THAT:- We admit the Appeal on the question (a) as under: (a)Whether on the facts and circumstances of the case and in law the Hon'ble the ITAT was right, in deleting the disallowance under Section 14A r.w.s. Rule 8D when no exempt income was earned by the Assessee?” Addition u/s 36(1)(iii) - assessee was unable to prove the commercial expediency as narrated in the factual & legal matrix clearly brought out in assessment order by AO - AO concluded that the difference between income generated and interest paid is not allowable and hence, disallowed difference - HELD THAT:- CIT (A) as well as ITAT have accepted that entire interest expenses has to be allowed in toto under section 36(1)(iii) as well as under section 37(1) as being for the purpose of business and the same was undoubtedly and undisputedly taken for the purpose of business. Since these are findings on facts, in our view no substantial question of law arises.
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