Dismissing the appeal of the revenue the Court held that ; when the advance made to subsidiaries the presumption is that the advance was from the interest free generated or available with the company hence disallowance of interest was held to be not valid . ( AY. 2003 -04 to 2006 -07)
CIT v. Reliance Industries Ltd ( 2018) 161 DTR 420/ ( 2019) 410 ITR 468 ( Bom) (HC)Editorial: Affirmed, CIT v. Reliance Industries Ltd ( 2019) 410 ITR 466 /175 DTR 1/ 307 CTR 121 (SC)
S. 36(1)(iii) :Interest on borrowed capital – Advance to subsidiaries- Presumption is that the advance was from the interest free generated or available with the company- Disallowance of interest was held to be not valid .