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2018 (4) TMI 177 - AT - Income TaxDisallow the interest u/s. 36(1)(iii) read with section 40A - assessee had advanced money at lower rate of interest or free of interest out of the funds borrowed by the assessee at higher rate of interest - Held that:- The assessee was required to explain firstly that the money was advanced by the assessee to its sister concerns or its subsidiary companies either at lower rate of interest or free of interest; that if it is so, how and for what purpose the money advanced by the assessee were utilized by the borrowers; and that what were the business expediencies under which the assessee had advanced the money at lower rate of interest or free of interest. In the present case, as already stated, the aforesaid conditions do not stand established cumulatively to dislodge the disallowance made by the authorities below. The other decisions relied on by the assessee are also found distinguishable on facts. No justification to interfere with the order of the ld. CIT(A) finding no infirmity therein, which has been reached after following the ratio laid down in various decisions mentioned in the impugned order. Accordingly, the appeal of the assessee deserves to fail being devoid of merits.
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