https://www.taxtmi.com/caselaws?id=338996 The ITAT allowed the appeal, overturning the CIT(A)'s decision and canceling the disallowance of Rs. 4,94,811 under Section 36(1)(iii) of the Income Tax Act, 1961. The ITAT held that since the assessee had enough own funds, the investments were presumed to be made from these funds, making the interest disallowance unwarranted. The ITAT emphasized that when using own interest-free funds, the provisions of Section 36(1)(iii) do not apply, regardless of the commercial expediency of the investment. en-us Mon, 28 Nov 2016 00:00:00 +0530 Thu, 16 Feb 2017 09:04:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=338996 The ITAT allowed the appeal, overturning the CIT(A)'s decision and canceling the disallowance of Rs. 4,94,811 under Section 36(1)(iii) of the Income Tax Act, 1961. The ITAT held that since the assessee had enough own funds, the investments were presumed to be made from these funds, making the interest disallowance unwarranted. The ITAT emphasized that when using own interest-free funds, the provisions of Section 36(1)(iii) do not apply, regardless of the commercial expediency of the investment. Case-Laws Income Tax Mon, 28 Nov 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=338996