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2014 (9) TMI 1088 - AT - Income TaxAddition u/s 36(i)(iii) - Held that:- We have found that the assessee has enough own, interest free, funds to make advances to relatives without charging interest. In A.Yrs. 2006-07, 2007-08, and 2008-09 when CIT(A) deleted similar disallowances, did not file appeal, hence, to maintain consistency, this disallowance is not justified. The A.O. has not invoked the provisions of Section 36(i)(iii) of the Act. Notional interest cannot be charged as has been done in this case. There is no allegation of diversion of funds. It is also noticed that the assessee has also raised interest free loans. This, not being a case of diversion of funds, we cannot interfere in the impugned finding. The deletion made by ld. CIT(A) is quite justified. Therefore, we confirmed the finding of ld. CIT(A) and dismiss this appeal of revenue
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