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 that no expenditure in relation to exempt income was disallowed by assessee u/s 14A. Assessee had sufficient own interest free funds to make in...