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2019 (4) TMI 963 - ITAT DELHIDisallowance of interest on term loan paid by the assessee company on the loan raised from the Bank - allegation that raised fund had not been used for its business purposes - interest free funds as sufficient to meet the Investments - HELD THAT:- Assessee referred to the balance sheet of the assessee-company which shows that assessee-company has share capital and unsecured loans to the tune of ₹ 16.92 crores. The assessee has interest free unsecured loans in a sum. Thus, assessee has sufficient interest free funds available, then presumption would arise that loan given by the assesseecompany to the subsidiary company, would be out of the interest free funds generated as are available with the assessee-company. When interest free funds were sufficient to meet the Investments above, no disallowance could be made against the assessee. We are of the view that addition is wholly unjustified. We, accordingly, set aside the orders of the authorities below and delete the addition. - Decided in favour of assessee.
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