No Section 14A Disallowance if Assessee has Surplus Interest-Free Funds Exceeding Exempt Income Investments

Aditya Birla Nuvo Limited Vs ACIT (ITAT Mumbai) Introduction: Aditya Birla Nuvo Limited secured a significant victory when the Income Tax Appellate Tribunal (ITAT) Mumbai granted relief in a recent appeal. The ruling pertained to the disallowance under Rule 8D(2) of the Income Tax Rules, considering investments that had generated exempt income. Detailed Analysis: 1. Background of the Appeal: The appeal by Aditya Birla Nuvo Limited was previously heard by the ITAT Mumbai, and an order was issued on December 20, 2019. Subsequently, a Miscellaneous Application was filed by the assessee to recall ...