Interest cannot be disallowed without proving utilisation for non-business purposes

1. The sole issue involved in this appeal is that the ld CIT(A) erred in deleting the dis allowance of Rs. 35,37,793/- made by the Assessing Officer out of interest expenses as the interest bearing funds were used for non business purposes.

2. The brief facts of the case are that the Assessing Officer observed the assessee has debited interest of Rs. 70,21,679/- in the profit & loss account against which the assessee has earned interest income of Rs. 31,83,886/- and hence, the net interest income debited in the profit and

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