Disallowance u/s. 14A not justified as investment made out of interest free funds: ITAT Jaipur

Agrasen Engineering Industries Pvt. Ltd Vs National E-Assessment Centre (ITAT Jaipur) ITAT Jaipur held that the assessee has sufficient amount of interest free fund to make investment yielding exempt income, therefore, disallowance under section 14A of the Income Tax Act not justified. Accordingly, appeal of assessee allowed. Facts- The assessee company derives income from manufacturing and job work of automobile components. While conducting the proceeding of making the assessment, ld. AO noted from the balance sheet of the assessee that the assessee had made investments in equities shares amo...