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2023 (8) TMI 1401 - AT - Income TaxDisallowance of interest u/s 14A r/w second limb of Rule 8D(2) of the Rules - HELD THAT:- As stated that assessee had sufficient interest free funds for the purpose of making investment and therefore, no disallowance should be made. We find that this precise issue was taken in A.Y. 2010-11 wherein the Tribunal has remanded back this issue to examine if assessee had surplus interest free funds far exceeding the investment made which has yielded exempt income, then no disallowance u/r 8D(2) should be made. Accordingly, this issue of disallowance of interest u/r 8D (2) is remanded back to the file of AO to decide this issue afresh even though assessee might have suo-moto offered disallowance which now has been claimed that no disallowance should be made in view of the decision of South Indian Bank Ltd [2021 (9) TMI 566 - SUPREME COURT] has held that assessee has surplus funds and no disallowance of interest can be made.
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