Tribunal held that the Supreme Court in CIT v. Reliance Industries Ltd. (2019) 410 ITR 466 (SC), Hero Cycles (P) Ltd. v.CIT. (2015) 379 ITR 347 (SC) and Munjal Sales Corporation v. CIT, (2008) 298 ITR 298 (SC) laid down that if the interest-free funds available to the assessee were sufficient to meet its investment, then it could be presumed that the investment were made from the interest-free funds available with the assessee. In the instant case, the interest-free funds available with the assessee were more than the advance paid to its sister concerns. Therefore the issue in hand was remanded to the file of the AO to decide accordingly in terms of the dictum of the Supreme Court. (AY. 2009-10, 2010-11)
Rajinder Kumar Gupta v. DCIT (2019) 76 ITR 324 (Amritsar)(Trib.)
S. 36(1)(iii) : Interest on borrowed capital-Interest-free loans to sister concerns-Interest-free funds available with assessee more than advance paid to its sister concerns-AO to decide in accordance with supreme court decision.