Interest Disallowance Deleted as Assessee proves Mutual Fund Investment from Own Funds

Mahadev Infracon Vs DCIT (ITAT Ahmedabad) ITAT Ahmedabad Deletes 36(1)(iii) Disallowance — Assessee proved Mutual Fund Investment from Interest-Free Funds Assessee, a partnership firm engaged in real estate development, filed its return declaring ₹1.98 crore income. During assessment, AO disallowed ₹10.39 lakh u/s 36(1)(iii), alleging diversion of borrowed funds towards a mutual fund investment of ₹5 crore made in January 2017 & redeemed in March & May 2017. Assessee explained that the investment was made entirely from interest-free funds, that no new unsecured loans were taken...