Disallowance u/s 14a or 37

Dear Friends and experts,

ABC is a subsidary of XYZ. ABC raised funds of Rs. 5 Crore through Debentures during the year. That money was advanced by ABC to XYZ to be incurred by XYZ for its project but ABC did not charge any Interest from XYZ on such advance. ABC charged Rs, 25 Lakhs Interest on Debentures for the year to Profit and Loss A/c. There is no other income for ABC for that year.

Now my query is:

1) For Income Tax Computation of ABC for that year - whether that Interest of Rs. 25 Lakhs is disallowed ?

2) IF It is disallowed, then disallowed under section 37 or 14A ?

Please kindly advise with explanations.