In case of mixed funds investment must be considered to be out of interest free fund

PCIT Vs PTC India Financial Services Limited (Delhi High Court)

A perusal of the paper book reveals that the AO rejected the assessee company’s computation on the ground that the ‘assessee company had raised substantial amount of loans for investment in new ventures on which substantial amount of interest was paid’. However, the Appellate Authorities below held that the investments were made out of assessee’s own funds and no borrowed funds were used to acquire investments. Consequently, there was no interest expenditure which could be d

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