Tribunal held that where assessee had sufficient interest-free funds of its own in form of share capital and free reserves to meet its investment yielding exempt dividend income, then it could be presumed that such investments were made from interest-free funds available with assessee and not from interest bearing borrowed funds. Accordingly the addition of interest was deleted. (AY. 2104-15)
DCIT v. Century Plyboards (I) Ltd. (2021) 187 ITD 35 (Kol.)(Trib.)
S. 14A : Disallowance of expenditure-Exempt income-Own interest free funds in the form of share capital and free reserve-Interest disallowance is not justified. [R. 8D]