Disallowance under rule 8D(2)(ii) unjustified as interest bearing funds not applied for making investments

Apeejay Pvt. Ltd. Vs DCIT (ITAT Kolkata) ITAT Kolkata held that there is no finding that interest bearing funds have been applied for purpose of making investment. Further, on account of sufficient availability of interest free funds, interest disallowance under rule 8D(2)(ii) unjustified. Facts- The assessee is a private limited company engaged in the business of operating business centres and letting out. Case selected for scrutiny through CASS followed by issuance of notice u/s. 143(2) and 142(1) of the Act. The major issues for consideration by AO were with regard to disallowance under Sec...