If assessee advanced to sister concerns or others without interest for no business purpose, interest to that extent to be disallowed

 If assessee advanced to sister concerns or others without interest for no business purpose, interest to that extent to be disallowed The assessee claimed deduction of Rs. 38,39,250 towards interest paid to bank and other loans. The Assessing Officer noticed that the assessee-company has invested Rs. 53,96,000 in M/s. Green Rayalaseema Industries Ltd. The Assessing Officer was of the opinion that the proposed interest on the amount invested in this company is not for the purpose of business and the same was disallowed proportionately. As per provisions of section 36(1)(iii) of the Act, the in...