S.36(1)(iii) Disallowance if assessee has significant interest in subsidiary business

Whether when the assessee has significant interest in the business of the subsidiary and utilizes even borrowed money for furthering its business any disallowance can be made u/s 36(1)(iii).

There is a finding of fact by the CIT (A) and Tribunal that borrowed funds were not used by the assessee for the purposes of investment in the shares of its wholly owned subsidiary Reliance Infocomm Ltd. or for making advances to Reliance Industries Ltd. Where the assessee, has significant interest in the business

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