Interest Disallowance u/s 36(1)(iii) Not Automatic; Advances May Be From Assessee's Own Funds, Not Borrowed.

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....Disallowance of interest u/s 36(1)(iii) - Merely because the advances were given from assessee’s cash credit account, a simplistic presumption cannot be drawn that advances were from borrowed funds given that the cash credit account is likely to have credits/deposits from assessee’s business operations and/or other bank accounts. - AT....