Dismissing the appeal of the revenue the Court held that the assessee had sufficient interest free funds accordingly disallowance of interest cannot be made on the ground that the money was advanced to the sister concerns without interest . (AY.2011-12, 2012-13)
CIT v. Malhotra Book Depot. (2019) 416 ITR 221 (P&H) (HC)
S. 36(1)(iii) :Interest on borrowed capital – Advance to sister concerns without interest – Having sufficient interest free funds – Disallowance of interest cannot be made .