Revenue neutrality in domestic related-party loans can require deletion of interest transfer pricing adjustments after domestic-transaction verificati...
Pre-enactment land-sale agreements escape stamp-duty value substitution where substantial banking-channel consideration was received before Section 43...
Customs valuation and classification require comparable evidence and assessment of imported goods in their actual condition, invalidating related pena...
Disallowance of claim of interest expenses u/s. 57(iii) - The Assessing Officer (AO) had disallowed a portion of the interest expenses based on the difference between the interest charged by the appellant on loans given and the interest paid on loans taken. However, the ITAT found that since the appellant used interest-bearing funds to earn interest income, the disallowance of expenses exceeding the interest charged on loans given was not justified. - The Tribunal also criticized the AO's interpretation of the term "income," stating that as long as the expenses were incurred for the purpose of earning income, regardless of whether a profit was earned, they should be allowed as deductions under Section 57(iii) of the Act.
Disallowance of claim of interest expenses u/s. 57(iii) - The Assessing Officer (AO) had disallowed a portion of the interest expenses based on the difference between the interest charged by the appellant on loans given and the interest paid on loans taken. However, the ITAT found that since the appellant used interest-bearing funds to earn interest income, the disallowance of expenses exceeding the interest charged on loans given was not justified. - The Tribunal also criticized the AO's interpretation of the term "income," stating that as long as the expenses were incurred for the purpose of earning income, regardless of whether a profit was earned, they should be allowed as deductions under Section 57(iii) of the Act.
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