Tribunal held that when the assessee has sufficient interest-free funds were available out of which the interest-free loans and advances were provided to parties. How much is a reasonable expenditure has to be decided by the assessee and not the department. Disallowance was deleted .(AY.2013-14, 2014-15)
Balji Electrical Insulators P. Ltd. v Dy. CIT (2020)82 ITR 39 (SN) (Ahd) (Trib)
S. 36(1)(iii) :Interest on borrowed capital – Reasonableness of expenditure has to be decided by assessee and not department – Sufficient interest-free funds- No disallowance can be made .