Interest Disallowance Deleted as Own Funds Exceeded Advances: ITAT Pune

ACIT Vs Mehul Construction Company Pvt. Ltd. (ITAT Pune) Pune ITAT Upholds Deletion of ₹5.02 Crore Interest Disallowance: Presumption Applies When Interest-Free Funds Exceed Advances The Pune ITAT dismissed the Revenue’s appeals for three assessment years and upheld the deletion of interest disallowance of ₹5.02 crore, holding that where the assessee possesses sufficient interest-free funds exceeding the amount advanced, a presumption arises that the advances were made out of such funds and no disallowance under Section 36(1)(iii) is warranted. The assessee company had advanced interest-...