Assessing Officer disallowed interest paid on borrowed capital on ground that assessee had advanced interest free funds. Tribunal deleted the disallowance. On appeal High Court held that where assessee had not utilized interest bearing borrowed funds for making interest-free advances as assessee had its own interest-free fund far in excess of interest-free advance, disallowance of interest on borrowed capital is not justified. Order of Tribunal is affirmed. (AY. 2011-12)