Assessee-company advanced interest-free loans to its subsidiary . Assessing Officer made disallowance on account of interest paid on borrowed funds under section 36(1)(iii) . CIT(A) deleted the disallowance . Order of CIT(A) is affirmed by the Tribunal . On appeal the Court held that  the assessee was holding company and had a deep interest in its subsidiary .  There was no allegation at all that loans advanced by assessee were utilized for personal benefit of directors of subsidiary .  Besides, there was material on record that interest free loans advanced to subsidiaries were not from borrowed monies.  Material on record suggested that assessee had reserves of huge amount to cover such loans advanced to its subsidiary .  On facts, there could not be any disallowance of interest under section 36(1)(iii) and, accordingly. Order of  Tribunal is affirmed . (AY. 2011- 12 )