Interest-Free Funds Presumed for Advances to Subsidiaries; Disallowance of Brokerage and Bank Charges Overturned.

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....The assessee failed to demonstrate that the financial assistance availed on interest was utilized for business purposes without diversion. Where an assessee has interest-free and interest-laden funds, advances made to subsidiaries, family, or friends are presumed from interest-free funds if sufficient. The AO cannot question commercial wisdom but can examine if interest-free funds meet interest-free advances. The CIT-DR rightly argued against relying on previous decisions due to factual differences each year. However, the CIT(A) found identical facts to the previous year's Tribunal order favoring the assessee. The assessee had sufficient interest-free funds to cover related party advances except for one at 9% interest. Other related parties.........