Dismissing  the appeal of the revenue the Court held that ,merely because non-interest bearing advances were given to third parties, that would not justify a finding that the test of “commercial expediency” was not satisfied. Interest-free advances were advanced to the parties connected with the business of the assessee. Money taken on loan was not diverted for non-business purpose. The unsecured loans were not used for personal purpose. According the interest paid on capital borrowed for the purpose of business had to be allowed as a deduction. (AY.2011-12)