Tribunal held that the car loan amount was directly disbursed to the seller of the car. Inasmuch as the loan was for the purpose of business, merely because the assessee had placed his own funds and interest-free loans for some other purposes, it was not open to the Assessing Officer to disallow the interest on the amount taken for business purpose. (AY. 2013-14)
Vinay Bhasin v. ACIT (2020) 83 ITR 78 (SN) (Delhi)(Trib.)
S. 36(1)(iii) : Interest on borrowed capital-Interest on car loan-Car Loan amount directly disbursed to seller of car-Own fund utilized for advancing interest free loan-Disallowance of interests is not justified.