Held that there was no dispute regarding the nature of the expenditure: only that the interest expenditure claimed under the section was not wholly and exclusively expended for the purpose of earning the interest income. The Dispute Resolution Panel after duly noting the chronology of events, i. e., the borrowing of interest-bearing funds by the assessee and thereafter advancing them as interest-bearing loan to the sister concerns, and came to the conclusion that the interest expenditure claimed by the assessee was directly related to the interest income earned during the year under consideration. It was undisputed that the assessee utilised the interest-bearing borrowed funds for advancing the loans to the sister concerns. Violation of Reserve Bank of India guidelines on the usage of external commercial borrowings for other purposes had no relevance in the allowance of deduction under section 57(iii) of the Act. Order of DRP is affirmed . (AY.2009-10, 2010-11)