Section 36 of Income Tax Act, 1961—In the instant case, AO did not allow interest expenditure on the advance given to the sister concern claimed by the assessee. 

Held that—Since interest free funds are more than the interest free advance given by the assessee, therefore, there should not be any interest expenditure require to be disallowed from the claim of the assessee. [SOLACE CAPITAL SERVICES P. LTD. VERSUS ITO, WARD-4 (1) (2) AHMEDABAD.] [2019] 13 ITCD Online (1) [ITAT AHMEDABAD]