Taxpayer's Interest Deduction Disallowed: Funds Redirected to Subsidiaries Without Commercial Justification, Upheld by CIT(A) u/s 40A.

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....Disallowance of interest on advances to subsidiaries u/s.40A - AO was of the opinion that the assessee has diverted interest bearing funds to subsidiaries for non-business purposes - the assessee neither produced any detail to prove commercial expediency nor proved that said advances were given out of own funds. Therefore, we are of the considered view that there is no error in the findings recorded by the ld.CIT(A) to confirm disallowance of interest. - AT....