Disallowance u/s. 14A unwarranted as interest-free funds exceeds investment: ITAT Ahmedabad

DCIT Vs Gujarat State Fertilizers & Chemicals Ltd (ITAT Ahmedabad) ITAT Ahmedabad held that no disallowance under Section 14A of the Income Tax Act warranted as interest-free funds exceed the investments made, and there is no evidence to suggest that borrowed funds were used for such investments. Facts- AO disallowed the interest expenses of Rs.1,82,91,360/- and administrative expenses of Rs.2,12,49,050/- invoking the provisions of Section 14A by making total addition of Rs.3,95,40,410/-. CIT(A) deleted the disallowance made in respect of the interest expenses of Rs.1,82,91,360/- and confi...