Disallowance u/s. 36(1)(iii) unjustified as interest-free funds exceeds loan to subsidiary: ITAT Ahmedabad

Oriental Enterprise Pvt Ltd Vs ACIT (ITAT Ahmedabad) ITAT Ahmedabad held that disallowance u/s. 36(1)(iii) of the Income Tax Act unjustified as interest-free funds exceeds loan to the subsidiary and loan was advanced for commercial expediency. Facts- The assessee-company was engaged in the business of manufacturing and trading of engineering equipment for chemicals, petrochemicals, fertilizers, textiles and other industries. The assessee also acts as agents of indigenous manufacturers from various industries viz. chemicals, textiles, plastics, machine toolsets, as well as sole concessionaries ...