Steel-timber construction shuttering/formwork tariff classification dispute: essential character held steel, classified as shuttering under Heading 73...
Family-linked property purchases using fabricated loan agreements and benami-style arrangements held to be crime proceeds; attachment upheld, appeal d...
Charitable tree plantation and maintenance for environmental preservation treated as "charitable activity", exempt from GST under Notification 12/2017...
Dominant issue: Whether disallowance under section 36(1)(iii) for alleged diversion of funds is justified. Reasoning: Tribunal found admitted interest receipts from partners and that the assessee charged interest on partners' debit balances, which compensates use of funds; there was also acceptance of availability of substantial interest-free funds and no nexus established between borrowed funds and alleged non-business advances. Legal basis: s.36(1)(iii) requires proof of diversion of borrowed funds for non-business purposes. Outcome: Disallowance under s.36(1)(iii) was unsustainable and the assessee's appeal is allowed. - ITAT
Dominant issue: Whether disallowance under section 36(1)(iii) for alleged diversion of funds is justified. Reasoning: Tribunal found admitted interest receipts from partners and that the assessee charged interest on partners' debit balances, which compensates use of funds; there was also acceptance of availability of substantial interest-free funds and no nexus established between borrowed funds and alleged non-business advances. Legal basis: s.36(1)(iii) requires proof of diversion of borrowed funds for non-business purposes. Outcome: Disallowance under s.36(1)(iii) was unsustainable and the assessee's appeal is allowed. - ITAT
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