Assessee is  engaged in business of construction and sale of residential and commercial plots.  It collected advances from customers for property sales in terms of MOU and paid interest on these advances in case of delayed delivery of flats.  Assessing Officer held  that assessee had non-current investments and was of view that interest-bearing funds were diverted for non-business purposes. Accordingly, disallowed finance charges being interest paid on advances. CIT(A) affirmed the order of the AO. On appeal the Tribunal held that since assessee had proved that funds received from customers as advances were utilized for business purpose, is allowable as deduction.  (AY. 2016-17, 2017-18)