Held, that since the assessee had interest-free funds available with it in the form of share capital and reserves greater than the advances given to subsidiaries and related concerns on the presumption that no interest-bearing funds had been utilised for the interest-free loans and advances was available. Interest not to be disallowed. (AY.2007-08, 2010-11 to 2014-15).
Dy. CIT v. Wind World India Ltd. (2022)98 ITR 22 (Mum)(Trib)
S. 36(1)(iii) : Interest on borrowed capital-Advancement of interest free funds available in share capital form-Assumption that interest bearing funds utilized for interest free loans-Interest payment not to be disallowed.