Bench: ALOK ARADHE,H.T. NARENDRA PRASAD
viia) of the Act, the subsequent recoveries are not taxable under Section 41(1) or Section 41(4) of the Act. It was further held that disallowance under Section 14A of the Act towards borrowed fund on investment should be restricted to 2% of the interest on tax free bonds. The Commissioner of Income Tax (Appeals) deleted the disallowance