No Interest disallowance for amount advanced without interest out of Interest free funds

In this case Assessing Officer noted that from the perusal of the balance sheet and Annexures it was noted that the assessee has taken loans from banks, amounting to RS. 8,32,93,610/- in the form of secured loan and also from other parties, amounting to Rs. 56,20,479/- in the form of unsecured loans. The Assessee has also taken loans of RS. 4,63,90,000/- in his personal capacity and has used it in his business of share trading. The assessee is paying interest thereon, amounting to RS. 1,66,86,977/- to banks and Rs. 2,02,45,961/- to others. Further, the assessee has advanced interest free frien...