Dismissing the appeal of the revenue , the Court held that ; advance was paid to director to acquire guest house for the business purposes , disallowance of interest was held to be not justified . ( AY. 2009 -10)
CIT v. Mira Exim Ltd. (2018) 400 ITR 28 (Delhi) (HC)
S. 36(1)(iii) :Interest on borrowed capital – Advance to director for the purpose of business- Disallowance of interest cannot be made .