Where assessee claimed that the investment made in capital assets was out of their own funds and sufficient evidences were provided to prove the same, the interest paid on borrowed funds was to be allowed under section 36(1)(iii). (AY. 2009-10, 2010-11)
Tata Sky Ltd. v. ACIT (2020) 195 DTR 177 / 208 TTJ 194 (Mum.)(Trib.)
S. 36(1)(iii) : Interest on borrowed capital-Investment made during the year in capital assets-Proven to be out of assessee’s own fund-Disallowance was not justified.