Disallowance u/s 36(1)(iii) unsustainable as interest bearing funds not utilized for non-business purpose

DCIT Vs Om Land Reality P. Ltd (ITAT Ahmedabad) ITAT Ahmedabad held that disallowance of interest under section 36(1)(iii) unsustainable as interest bearing funds were not utilized for non-business purpose and interest free advances were made in the course of business. Facts- Only two issues are the addition made related to advances received from prospective buyers treated as unexplained credits and added to the income of the assessee under section 68 of the Act and of interest paid by the assessee disallowed in terms of provisions of section 36(1)(iii) of the Act. It was pointed out that the ...