ITAT Jaipur says Interest Deduction Protected by Sufficient Interest-Free Funds

The ITAT Jaipur deleted an interest disallowance of ₹34.91 lakh arising from capital contributions to a partnership firm. Applying the Supreme Court's ruling in Reliance Industries, the Tribunal held that sufficient interest-free funds justify a presumption that investments were made from those funds. Revenue cannot dictate how a business should deploy its available resources.