No Disallowance under Rule 8D if interest-free funds were adequate to cover investments

Prakash Udyog Limited Vs ITO (ITAT Mumbai) In a recent ruling, the Income Tax Appellate Tribunal (ITAT) Mumbai has delivered a significant decision in the case of Prakash Udyog Limited vs. Income Tax Officer (ITO), addressing two key issues raised by the assessee for the assessment year 2016-17. The ruling focused on errors in the computation of total income and the applicability of Section 14A for disallowing expenses related to exempt income. In this case Assessee was represented by CA Milind Wadhwani. Background of the Case Prakash Udyog Limited, engaged in trading agro-commodities, filed a...