Additional evidence in transfer pricing dispute leads to fresh examination, while tax deductions, TDS credit, fee and refund interest require verifica...
Category II AIF pass-through taxation preserves non-business income character; investment receipts cannot be reclassified without applying recognised ...
Mutual fund maturity rules require proper rollover, redemption, disclosure, and due diligence; investor gains cannot excuse regulatory breaches or pen...
Threshold exemption excludes exempt services, while stamp-paper purchases avoid reverse charge; consequential service tax penalties were also set asid...
Employee conflict disclosures and investment restrictions expand with new recusal duties, post-employment limits, and compliance reporting requirement...
The ITAT held that interest paid under Section 50(3) of the GST Act is compensatory, not penal, and thus deductible under Section 37(1) of the Income Tax Act. The disallowance of such interest by the AO and CIT(A) was set aside. Regarding disallowance under Section 36(1)(iii) for interest on advances, the Tribunal found no established nexus between borrowed funds and interest-free advances, relying on the presumption that advances were made from interest-free funds supported by financial statements. The AO's reliance on statements without proper fund tracing was insufficient. Consequently, the disallowance under Section 36(1)(iii) was also deleted.
The ITAT held that interest paid under Section 50(3) of the GST Act is compensatory, not penal, and thus deductible under Section 37(1) of the Income Tax Act. The disallowance of such interest by the AO and CIT(A) was set aside. Regarding disallowance under Section 36(1)(iii) for interest on advances, the Tribunal found no established nexus between borrowed funds and interest-free advances, relying on the presumption that advances were made from interest-free funds supported by financial statements. The AO's reliance on statements without proper fund tracing was insufficient. Consequently, the disallowance under Section 36(1)(iii) was also deleted.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4803
Join Channel
TaxTMI 
