Dismissing the appeal of the revenue , the Court held that , when advances were out of interest free funds available with assessee, expenditure on borrowed amount is allowable as deduction .( AY. 2012-13)
PCIT v. Holy Faith International P. Ltd ( 2018) 407 ITR 445 ( P& H) (HC)
S.36(1)(iii): Interest on borrowed capital- Advances were made out of interest free funds available with assessee -Allowable as deduction .