Disallowance u/s. 14A not justified as sufficient own interest free funds available: ITAT Ahmedabad

Cera Sanitaryware Ltd. Vs DCIT (ITAT Ahmedabad) ITAT Ahmedabad held that disallowance of expenses under section 14A of the Income Tax Act not justifiable as there was sufficient own interest free funds available with the assessee for making investment. Thus, appeal of assessee allowed. Facts- The assessee was noted to have earned exempt income of Rs.22,44,171/- and to have made suo moto disallowance of expenses for the purpose of earning the exempt income u/s. 14A of the Act amounting to Rs.3,69,059/-. The assessee was asked to justify the suo moto disallowance made. Due reply was furnished by...