Inclusion of Bank & Bank Guarantee Charges for Disallowance u/s 14A Unjustified: ITAT Delhi

Advance Valves Pvt. Ltd Vs ACIT (ITAT Delhi) ITAT Delhi held that disallowance u/s. 14A of the Income Tax Act unjustified as sufficient interest free funds were available for investment. Also held that inclusion of bank charges and bank guarantee charges for making disallowance u/s. 14A unjustified. Facts- The case of the assessee company was selected for scrutiny assessment. AO noticed that the assessee made investment in a partnership firm. The income derived therefrom was not includible in the taxable income of the assessee. Therefore, AO issued show-cause notice asking as to why provisions...