Interest-free loan to sister concern- Sufficient own funds-No Disllowance can be made

Yogendra Khandelwal Vs ACIT (ITAT Jaipur)

Undisputedly, interest-free funds available with assessee were far in excess of amount advanced to sister concern and a presumption would arise in favour of the assessee that interest-free funds had been utilized for advancing interest free loan to the sister cocnern, therefore, disallowance of deduction under section 36(1)(iii) was not justified.

FULL TEXT OF THE ITAT JUDGMENT

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