Disallowance of interest u/s 36(1)(iii) unjustified as interest bearing funds not used for purchase of land

Manipal Education and Medical Group India Pvt. Ltd. Vs DCIT (ITAT Bangalore) ITAT Bangalore held that disallowance of interest u/s. 36(1)(iii) of the Income Tax Act unjustified as interest bearing funds not utilized towards purchase of capital assets (i.e. land). Facts- The assessee is engaged in the business of providing engineering asset management and maintenance service. The case was selected for scrutiny and statutory notices were issued to the assessee. AO further noted that the assessee has debited a sum into P&L account towards loan processing charges. On perusal of details submitt...