Interest allowed in earlier years cannot be disallowed in subsequent years

Mecords India Limited Vs ITO (ITAT Mumbai) ITAT states that, it was not disputed that the borrowings were made in earlier years and no disallowance of interest was made in earlier years with regard to the said borrowings and utilization thereon. Further, it was found that the amounts advanced by assessee to a party named ‘Neeta Mehta’ alone increased during the relevant year and in case of amounts advanced to all other parties except ‘Neeta Mehta’, the closing balance only reduced when compared to the opening balance, thus there could not be any disallowance of interest on the opening ...