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2012 (7) TMI 723 - AT - Income TaxDisallowance of interest on borrowed funds utilized in giving interest free advances and making investment in subsidiary company – assessee is a company of the Bharti Telecom group - After the demerger, the assessee became an investment company, which manages telecom business through its subsidiaries. The main object of the company is to approve the operations of telephony business through these subsidiaries - Relevant details about the funds flow available with the assessee were duly filed before AOA and ld. CIT(Appeals) to the effect that assessee had interest free funds of Rs. 1093.75 crores to its credit – Held that:- Assessee had sufficient interest free funds available to acquire the equity shares for subsidiary companies and it cannot be held that they were acquired out of interest bearing funds borrowed - revenue’s appeal is dismissed.
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