Disallowance for diverting interest bearing funds into tax-free income

Dis-allowance on the ground that the assessee has diverted interest bearing funds into tax-free income can not be made where the assessee owes ample interest free funds on the date of investment. Weikfield Products Co. (I) Pvt. Ltd. Vs. DCIT (ITAT Pune) Relevant Extract from the Case law 4. At the outset of hearing, the Ld. A.R. pointed out that the issue raised in the grounds of the appeal is fully covered by the decision of Pune Bench of the Tribunal in the case of assessee itself for the A.Y. 2000-01 to 2003-04 vide ITA No. 1053/PN/2007 and others, order dated 30thJune 2009. The Ld. A.R. ...