https://www.taxtmi.com/caselaws?id=471635 Interest disallowance under Section 36(1)(iii) is not sustainable merely because borrowings exist where sufficient interest-free own funds exceed interest-free advances and no nexus between borrowed funds and the advances is established. Interest-free advances made in an earlier year were treated as funded from the assessee's own funds, particularly as no disallowance arose in that year and there were no short-term borrowings in the relevant years. The claimed interest expenditure therefore remained allowable. Delay in filing the appeals was condoned because the former professional did not communicate the appellate orders, no physical copies were served, and the delay was bona fide. en-us Wed, 21 Aug 2024 00:00:00 +0530 Fri, 11 Sep 2026 15:46:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=471635 Interest disallowance under Section 36(1)(iii) is not sustainable merely because borrowings exist where sufficient interest-free own funds exceed interest-free advances and no nexus between borrowed funds and the advances is established. Interest-free advances made in an earlier year were treated as funded from the assessee's own funds, particularly as no disallowance arose in that year and there were no short-term borrowings in the relevant years. The claimed interest expenditure therefore remained allowable. Delay in filing the appeals was condoned because the former professional did not communicate the appellate orders, no physical copies were served, and the delay was bona fide. Case-Laws Income Tax Wed, 21 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=471635