No disallowance u/s. 14A if Interest Income is more than Interest expense

DCIT Vs Universal Industrial Fund Ltd. (ITAT Kolkata) Interest expense incurred in the business of money lending was Rs.2,0276,317/-. In the course of its business of financing, the assessee borrows and lends monies. The assessee pays interest on the borrowed funds and earns interest on the loans advanced. Therefore, both the interest income and the interest payment are intrinsically linked. There is complete inter lacing of funds and therefore, for ascertaining the tax effect, netting off of interest paid with interest received is necessary. It is for this reason that the net interest is refl...