Disallowance of interest u/s 36(1)(iii) restricted to borrowed amount not used for business

Rishabh Birla Vs JCIT (ITAT Delhi)

ITAT Delhi held that disallowance of interest u/s. 36(1)(iii) of the Income Tax Act to be restricted to the borrowed amount which is not used for business purpose.

Facts- AO made disallowance of Rs.38,29,320 by holding that the assessee has not utilized the loan funds for business purposes but diverted them for acquiring immoveable property, for giving advances against properties and for the purpose of the interest-free loan and advances

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