Disallowance under Income Tax Act cannot be based on Presumptions of Earning Dividend Income in future: ITAT [Read Order]
The ITAT found that the AO has proceeded for disallowance made based on presumptions that the investment was made from borrowed funds bearing interest expenditure, which may earn dividend income in the future
The Mumbai Bench of the Income Tax Appellate Tribunal ( ITAT ) has held that disallowance under Income Tax Act, 1961 cannot be based on presumptions of earning dividend income in future. It was found that the Assessing Officer ( AO ) has proceeded for disallowance made based on presumptions that the investment was made…
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