For disallowing interest AO must give a finding with regard to the nexus between the interest bearing funds available and interest free advances made during the year

Amarpali International Vs. ACIT (ITAT Delhi)- Ld. counsel of the assessee submitted that assessee has adequate interest free funds available with the firm which have been used to make the advances during the year. She claimed that no nexus has been established between the interest bearing fund and advances to sister concerns. We have carefully considered the submissions. We find that for making any dis allowance in connection with the interest, it is incumbent upon the authorities below to give a finding with regard to the nexus between the interest bearing funds available with the firm and in...