Clean slate principle extinguishes uncrystallised operational claims and bars continuation of pending recovery and arbitral proceedings after plan app...
Works contract classification governs composite layout-development contracts where VAT-paid goods are transferred alongside construction and infrastru...
Specified income tax exemption for pollution control body remains conditional on non-commercial activity, unchanged income character, and return filin...
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The assessee failed to demonstrate that the financial assistance availed on interest was utilized for business purposes without diversion. Where an assessee has interest-free and interest-laden funds, advances made to subsidiaries, family, or friends are presumed from interest-free funds if sufficient. The AO cannot question commercial wisdom but can examine if interest-free funds meet interest-free advances. The CIT-DR rightly argued against relying on previous decisions due to factual differences each year. However, the CIT(A) found identical facts to the previous year's Tribunal order favoring the assessee. The assessee had sufficient interest-free funds to cover related party advances except for one at 9% interest. Other related parties were charged 12%. For unrelated advances at 9%, promoter/director relationship existed. Consequential disallowances of brokerage, commission, and bank charges were deleted upon deleting interest disallowance. The decision favored the assessee against the revenue.
The assessee failed to demonstrate that the financial assistance availed on interest was utilized for business purposes without diversion. Where an assessee has interest-free and interest-laden funds, advances made to subsidiaries, family, or friends are presumed from interest-free funds if sufficient. The AO cannot question commercial wisdom but can examine if interest-free funds meet interest-free advances. The CIT-DR rightly argued against relying on previous decisions due to factual differences each year. However, the CIT(A) found identical facts to the previous year's Tribunal order favoring the assessee. The assessee had sufficient interest-free funds to cover related party advances except for one at 9% interest. Other related parties were charged 12%. For unrelated advances at 9%, promoter/director relationship existed. Consequential disallowances of brokerage, commission, and bank charges were deleted upon deleting interest disallowance. The decision favored the assessee against the revenue.
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