Disallowance u/s 36(1)(iii) unjustified as investments made out of interest free funds

DCIT Vs Sylvannus Builders and Developers Ltd (ITAT Ahmedabad)

ITAT Ahmedabad held that when interest free funds are available with the assessee, it can be said that investments are made out of interest free funds and hence disallowance under section 36(1)(iii) of the Income Tax Act not justifiable.

Facts- The respondent assessee is a Private Limited Company engaged in the business of Real Estate Developers and Construction. For A.Y. 2016-17, the assessee filed its Return of Income on 28.09.2015 decla

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