Held that the assessee sufficient to meet the investment, the presumption would arise that the investment was made out of funds so available with the assessee. No disallowance can be made in respect of amount advanced to related parties. (AY.2013-14)
Lakozy Motors P. Ltd. v. Dy. CIT (2024)110 ITR 19 (SN)(Mum)(Trib)
S. 36(1)(iii) :Interest on borrowed capital-Loans given to related parties interest-free-Having sufficient funds to meet investment-Disallowance is deleted.[S.37(1)]