Addition untenable as interest-bearing funds not used for advancing interest-free funds

DCIT Vs SKM Fabrics (Amana) Ltd. (ITAT Mumbai)

Additions under section 36(1)(iii) of the Act, without bringing anything on record to suggest that interest-bearing funds were actually utilised for the purpose of advancing funds on which no interest was charged by the assessee, is unsustainable in law.

Facts-

The assessee filed its ROI declaring total loss at Rs. 10,92,25,828. During the course of assessment proceedings, it was observed th

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