Interest Disallowance u/s 36(1)(iii) Contested; Business Loans to Subsidiaries Deemed Valid, No Interest Disallowance Applicable.

Disallowance of interest u/s 36(1)(iii) - assessee has a stake in the performance and profit making of wholly owned subsidiaries - it cannot be denied that the advancement of loan is in connection with assessee’s business - the difference in the interest rate between the borrowed funds and loans advanced is only 3.25% and the advanced of loan in connection with its business - no disallowance .....

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