G.E.T. Water Solutions (P.) Ltd. v. ACIT (2022) 194 ITD 779 (Chennai)(Trib.)

S. 36(1)(iii) : Interest on borrowed capital-Loans to Subsidiaries-Advance from out of interest free funds available with them at relevant point of time-Disallowance of interest is not valid.

Held that the  assessee had filed necessary evidences to prove that there was a business connection between assessee and company to whom loans and advances were given and had placed all evidences to prove that interest free loans given to groups/subsidiary companies were out of interest free funds available with him at relevant point of time. Disallowance of interest is mot valid. (AY. 2014-15)