No disallowance of interest for loan advanced to Sister Concern out of Share Capital and Reserves

Grounds of appeal by Revenue: The Revenue, in ITA No. 7758/Mum/2010 & ITA No. 1364/Mum/ 2011, has raised the following grounds of appeal: – On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition of Rs.18,50,000/- being interest disallowed u/s. 36(1)(iii) of the I.T. Act, 1961, overlooking the failure of the assessee to substantiate that the amounts borrowed were for the purpose of the assessee’s business. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in placing reliance on the case of M/s. ...