Tribunal held that the assessee had made payments of certain amount on account of security deposit for uninterrupted supply of certain material for smooth functioning of its business, and further, assessee had substantial interest free own funds out of which said payment was made, no disallowance can be made. (AY .2006 -07)
Bhagwati Gases Ltd. v. DCIT (2019) 176 ITD 609 (Kol.)(Trib.)
S. 36(1)(iii) : Interest on borrowed capital-Advance of security deposit – Substantial interest free funds–No disallowances can be made.