Interest cannot be disallowed if huge interest free funds were available without any interest

CA Sandeep Kanoi AO while making this addition has observed as under:- “5. Addition on account of interest not charged on Advances: On perusal of Balance sheet of the assessee, during the course of assessment proceeding, it is seen that the assesses has stated Rs.92,24, 794/- as other advances, out of which he has shown interest received from 2 partiesn (1) Gaurav Industries and (2) Amtex Dye Chem Industries to the extent of Rs. 11,16,069/- and Rs.5,46,874/- respectively. The assessee is showing interest income of Rs.6, 71,530/- as interest received from the above two parties. Rs. l,36,745/-...