https://www.taxtmi.com/caselaws?id=758492 The ITAT Pune allowed the appellant company's appeal regarding disallowance of interest deduction. The company had borrowed interest-bearing funds and advanced interest-free funds to its sister concern. Following SC precedents in Reliance Industries Ltd. and South Indian Bank Ltd., the tribunal held that when sufficient interest-free funds are available to make investments, it can be presumed investments were made from such funds. Since the assessee had adequate own capital and free reserves exceeding the interest-free advance amount, no disallowance under Section 36(1)(iii) was warranted. en-us Mon, 09 Sep 2024 00:00:00 +0530 Sat, 14 Sep 2024 08:24:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=758492 The ITAT Pune allowed the appellant company's appeal regarding disallowance of interest deduction. The company had borrowed interest-bearing funds and advanced interest-free funds to its sister concern. Following SC precedents in Reliance Industries Ltd. and South Indian Bank Ltd., the tribunal held that when sufficient interest-free funds are available to make investments, it can be presumed investments were made from such funds. Since the assessee had adequate own capital and free reserves exceeding the interest-free advance amount, no disallowance under Section 36(1)(iii) was warranted. Case-Laws Income Tax Mon, 09 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=758492