No Disallowance U/s.14A for mere decrease in shareholders funds

CIT Vs M/s Max India Limited (Punjab and Haryana HC)

Where assessee’s borrowings of interest bearing funds got increased during the year, it could not be presumed that such borrowed funds were utilized for the purpose of investing in assets yielding exempt income and disallowance under section 14A made on the basis of such unfounded presumption were ordered to be deleted.

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