HC Remand Back the case to AO for Detailed Enquiry of Disallowance u/s 36(1)(iii)

CIT Vs Asian Peroxides Ltd. (Madras High Court) The issue under consideration is whether disallowance made u/s 36(1)(iii) is to be allowed when the Assessee has diverted interest bearing funds to its sister concern without charging any interest? High Court states that,the Assessing Authority has merely disallowance under Section 36(1)(iii) vide the afore-quoted portion from the Assessment order on the basis of Average Interest free loan and Interest bearing Secured Funds from the Assessee Company. The Assessing Authority has not gone into the aspect of the unpaid sale price by the Subsidiary C...