disallowance of Rs. 1,50,04,133/- under Section 36(1)(iii) of the Actby notionally computing interest @18% p.a. on Rs. 8,33,56,295/- i.e. the interest free advances given by the respondentassessee to the sister concerns As per 'nexus principle' approved in S.A. Builders (Supra) held that once link between the expenditure given by way of loans and the purpose of the business was established, Revenue cannot justifiably assume the role of the assessee to decide how much was reasonable expenditure having regard to the circumstances of thecase. The test of "commercial expediency" would only come into play if there was any finding that interest bearing funds had been diverted for making interest free loans Assessee during the period relating to the Assessment Year had sales of Rs. 37.16 crores, paid up share capital of Rs. 8.20 crores and reserves of Rs. 1.23 crores. Respondent-assessee had furnished ample evidence to show that sufficient funds were available to give interest free loans. Accordingly, addition of Rs. 1,50,04,133/- was directed to be deleted. Recording the aforesaid, we do not find any merit in this appeal and the same is dismissed, with no order as to costs.