Advances made from Mixed Funds will be presumed as Utilization of it’s own Funds

Brief of the case

The Delhi High Court in the case of held CIT vs. M/s. DD Industries Ltd. that when the assessee is possessed of mixed funds which include its own funds in sufficient quantity, a presumption that its own funds were utilized for the advances is to be drawn, where the Assessee gave interest free advances to its associate company.

Facts of the Case

The assessee is engaged in manufacturing and tr

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