If borrowed amount not used to earn exempt Income, no disallowance can be made U/s. 14A

ACIT  Vs. M/s Reliance Land Pvt. Ltd. (ITAT Mumbai)- Assessee  proved that interest paid to Reliance Capital Ltd. (7% interest on Rs. 538 crores) amounting to Rs. 2,78,58,082/- has been received from Swan Consultants (P) Ltd. on account of loan advanced to them. Further, the loan was taken on 28.4.2006 and given also on 28.4.2006. Similarly, interest paid to Reliance Capital Ltd. amounting to Rs. 5,60,54,795/- on account of loan of Rs. 300 crores @ 11% interest taken on 29.1.2007 has  been given to Swan Consultants P. Ltd. on the same day on which equal amount of interest has been received ...