Held, that if a specific loan had been taken for purchasing an asset, notwithstanding that the assessee had sufficient interest-free funds, interest on such loan had to be disallowed within the ambit of proviso to section 36(1)(iii). It was only after exhausting the specific loans taken for the purpose of acquisition of an asset that the proposition of availability of shareholders’ fund could be invoked for the balance amount of investment. The Commissioner (Appeals) was swayed by the assessee’s submission that only a sum of Rs. 6.25 crores was taken as loan from bank for the two projects without actually examining the details and purpose of other loans. Therefore, the findings of the Commissioner (Appeals) were not sustainable and the matter was remitted to the file of the Assessing Officer for considering it afresh in terms of the discussions made. (AY.  2013-14)