Kumar Urban Development Ltd. v. ITO (2020) 84 ITR 17 (SN) (Pune) (Trib.)

S. 36(1)(iii) : Interest on borrowed capital-Sufficient interest-free funds available for investment in sister concerns-Interest on borrowings not to be disallowed.

Tribunal held that where the assessee has sufficient interest-free funds of its own, the presumption that the investment in sister concerns was made out of such funds gets established and, therefore, no part of interest on borrowings can be disallowed on the basis of these investments.  (AY. 2012-13)