When Own Funds Are Huge, Interest Disallowance Fails: ITAT Deletes ₹5.62 Cr Interest  

ACIT Vs VIC Enterprises Pvt Ltd (ITAT Delhi) VIC Enterprises Pvt. Ltd. is an NBFC &  promoter of Dabur India Ltd., earning over 96% of its dividend income from Dabur. AO noticed that the company had made interest-free advances/investments of ₹108.45 Cr to group/associate entities while paying interest of ₹5.62 Cr on borrowings. AO presumed that borrowed funds were diverted interest-free &  disallowed the entire interest u/s 36(1)(iii). AO also made disallowance of ₹2.08 Cr u/s 14A. CIT(A) deleted both disallowances by following ITAT orders in Assessee’s own cases for AYs 2010...