Interest Disallowance Overturned; Administrative Costs Upheld; TCS Credit Adjusted for Next Year Assessment.

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Full Text of the Document

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....The ITAT Raipur held that no disallowance of interest expenditure was warranted u/s 14A as the assessee had sufficient self-owned funds. Citing the Bombay High Court and Supreme Court judgments, it was established that if the assessee had non-interest bearing funds larger than investments in tax-free securities, no disallowance was required. However, disallowance of administrative expenditure u/s 14A r.w.r. 8D(2)(iii) was upheld due to lack of plausible explanation. Regarding addition u/s 41(1) for cessation of liability, the ITAT found no justification for the addition of Rs. 10,00,000 and directed the AO to re-adjudicate the matter with an opportunity for the assessee to substantiate the claim. The decline of credit of TCS for the purchas.........