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2022 (1) TMI 930 - ITAT CHENNAIDisallowance made u/s. 36(1)(iii) - assessee had diverted interest bearing funds, without charge of any interest, and such diversion of funds shall be squarely covered by section 36(1)(iii) - CIT-A deleted the addition - HELD THAT:- We find that an identical issue has been considered by the Tribunal for immediately preceding assessment year 2014-15 [2019 (7) TMI 1698 - ITAT CHENNAI] where the Tribunal by following its decision in assessee's own case for assessment year 2013-14 [2018 (7) TMI 1476 - ITAT CHENNAI] deleted additions made by the Assessing Officer towards disallowance of interest expenses u/s. 36(1)(iii) of the Act as held assessee has been considered as an investment company and making investments was part of its business - deduction u/s.36(1) (iii) of the Act had to be allowed in respect of interest paid, if capital was borrowed for the purpose of business or profession. We further noted that the Hon'ble Jurisdictional High Court of Madras [2020 (10) TMI 1160 - MADRAS HIGH COURT] has affirmed findings of the Tribunal in deleting additions made by the Assessing Officer towards disallowance of interest expenses u/s. 36(1)(iii) of the Act - Decided in favour of assessee.
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