ITAT Bangalore: No Disallowance U/s 36(1)(iii) When Interest-Free Funds Exceed Advances-Revenue Appeals Dismissed

ACIT Vs Brigade Enterprises Limited (ITAT Bangalore) ITAT Bangalore: No Disallowance U/s 36(1)(iii) When Interest-Free Funds Exceed Advances-Revenue Appeals Dismissed In the case of Brigade Enterp rises Ltd., the Bangalore ITAT upheld deletion of interest disallowances u/s 36(1)(iii) made by the AO on account of interest-free advances to sister concerns. The Tribunal noted (as evident from balance sheet figures on record) that: The assessee had substantial interest-free funds (share capital + reserves) far exceeding the advances given, Therefore, a presumption arises that such advances are ma...