The assessee had own funds which were far more than interest free investment made by it in optionally convertible debentures (OPCD), presumption would be that such investment was made from own funds. Disallowance of interest is not justified. (AY. 2015-16)
DCIT v. Macrotech Developer Ltd. (2022) 192 ITD 438 (Mum.) (Trib.)
S. 36(1)(iii) : Interest on borrowed capital-Own funds are more than interest free investment-No disallowance can be made.