ACIT v. Kalthia Engineering and Construction Ltd. (2022) 93 ITR 30 (SN) (Ahd.)(Trib.)

S. 36(1)(iii) : Interest on borrowed capital-Own capital and reserves more than capital advanced-Disallowance of interest is not justified.

Held, that the assessee’s own funds being capital and reserves at the beginning of the financial year were much more than the capital advanced, no disallowance could be made. (AY.2014-15)