The assessee, engaged in printing and publication of newspapers, faced disallowance of interest expenses under section 36(1)(iii) on the ground that interest-free loans were given to group concerns out of borrowed funds, disallowance of one-third of brand relaunch expenses treating them as capital in nature. On appeal, the Tribunal held that in the absence of AO establishing a nexus between borrowed funds and the interest-free advances, a presumption arose that the advances were made out of the assessee’s own interest-free funds, and the disallowance under section 36(1)(iii) was deleted.(AY. 2010-11to 2012-13)