No Disallowance u/s 14A for interest if non-interest-bearing funds exceeds investments in tax-free securities

ACIT Vs Bajaj Resources Ltd (ITAT Delhi)

Conclusion: Disallowance could not be made on interest for earning exempt income under section 14A as assessee had available, non-interest-bearing funds larger than the investments made in tax- free securities.

Held: During the course of scrutiny assessment proceedings, AO noticed that assessee had claimed exemption in respect of dividend income of Rs. 62,07,50,000/- and profit in LLP of Rs. 198 crores. AO found tha

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