Tribunal held that where the advance is made to subsidiary from interest bearing funds, proportionate interest is to be disallowed . ( AY. 2003 -04)
DCIT v. Core Healthcare Ltd. (2019) 177 ITD 26 (Ahd.)(Trib.)
S. 36(1)(iii) : Interest on borrowed capital-Interest free loan to subsidiary from interest bearing funds- Proportionate interest payment is disallowable.