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.

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