ITAT Says Sufficient Own Funds Protect Interest Deduction

The assessee had own funds of ₹17.12 crore against advances of only ₹1.43 crore, and the Tribunal applied the Reliance Utilities presumption that such advances were made from own funds where a common fund is maintained. 

The Tribunal accordingly deleted the ₹6.50 lakh interest disallowance, while upholding ₹9.92 crore of long-term capital gain on land which it found to be urban, non-agricultural land within 8 km of the municipal corporation.