Suo-Motu 14A Disallowance Upheld as Own Funds Exceed Investments

Apcotex Industries Limited Vs ACIT (ITAT Mumbai) Suo-Motu 14A Accepted – Own Funds Exceed Investments— Further Disallowance Unsustainable Assessee challenged disallowance u/s 14A amounting to Rs.40,20,144/-. In the return of income, Assessee had already made suo-motu disallowance of Rs.10,21,200/- being 0.5% of the average value of investments. Assessee earned dividend income of Rs.56,31,238/- during the year. AO, however, held that interest expenditure of Rs.3.98 crore was relatable to investments & proceeded to enhance the disallowance. Before Tribunal, Ld. AR demonstrated from a...