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2021 (10) TMI 795 - AT - Income TaxAddition u/s 36(1)(iii) - interest expenses should be disallowed to the extent of interest free loans and advances given - HELD THAT:- Since, the assessee, in the instant case, is in the business of finance and investment and the interest paid is exclusively for earning interest income and such interest income has been included in the total taxable income and further considering the fact that own capital and free reserves of ₹ 5.05 crores is much more than the total investment in shares of ₹ 4.71 crores, therefore, respectfully following the decision of Hon’ble Delhi High Court in the case of EKL Appliances Ltd. [2012 (4) TMI 346 - DELHI HIGH COURT] hold that no disallowance of interest in the instant case is called for - Therefore, set aside the order of the CIT(A) and direct the AO to delete the addition. The ground raised by the assessee is accordingly allowed.
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