SC upheld presumption of investment out of interest free funds

CIT Vs M/s Reliance Industries Ltd (Supreme Court of India) Conclusion – Presumption that investment is made out of interest free funds is possible when Interest free funds is available with the assessee. Facts – Revenue has preferred an appeal against the order passed by the HC against interest deduction claimed u/s 36(1)(iii) against funds given to subsidiaries holding that interest would not have been payable to banks, if the funds were not provided to subsidiaries. Held –Interest free funds available to the assessee are sufficient to meet its investment. Hence, it could be presumed t...