Unless there is a findings that assessee’s investments is not business activity and the funds are not utilized for the purpose of business, disallowance u/s. 36(1)(iii) does not arise

Unless there is a finding that assessee’s investment is not business activity and the funds are not utilized for the purpose of business, dis allowance under section 36(1)(iii) does not arise. There is no dis allowance under section 14A in this year as the dividend income was taxable. Therefore, the interest dis allowance has to be considered under section 36(1)(iii). If there is income or loss under the head “capital gains”, the interest dis allowance under section 36(1)(iii) pertaining to the investment activity is also to be considered as deduction, while working out the capital gain....