In the result, appeal by the assessee stands dismissed
Bench: Shri V. Durgarao & Shri K.M. Roy, Accountant, Member
capital of partner is interest bearing funds for the firm. 7.6 In conclusion, the AO erred in not considering that interest free advances were out of interest free loan availed by the appellant. Consequently, the interest of Rs.5,30,902 i.e., 15% of Rs.35,39,351 (interest free advances) deserves to be deleted from the total addition of Rs.9