Dismissing the appeal of the revenue the Court held that, Advances made to sister concerns from own funds accordingly, no disallowances can be made .Followed S.A. Builders Ltd v. CIT ( 2007) 288 ITR 1 (SC) ( AY.1999-2000)
CIT v. Basti Sugar Mills Co. Ltd. (2018) 408 ITR 184 / 259 Taxman 97(Delhi) (HC)
S. 36(1)(iii) :Interest on borrowed capital – Advances made to sister concerns from own funds – No disallowances can be made .[ S.37(1) ]