Disallowance u/s. 36(1)(iii) not sustained as amount given to sister concern is investment not loan

Kamineni Health Services Private Limited Vs ACIT (ITAT Hyderabad)

ITAT Hyderabad held that disallowance by invoking provisions of section 36(1)(iii) of the Income Tax Act not sustained since the sum is not an advance/loan to sister concern, however, it is an investment.

Facts- During the course of proceedings, AO noted that once it is established that the assessee had raised certain loans for business purposes, on which interest liability is being incurred and on the other hand, the funds were advanced to sister concern for non-business purposes on interest

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