https://www.taxtmi.com/caselaws?id=66361 The Tribunal allowed the appeal of the assessee, a partnership concern in the welding business, in a case involving the disallowance of funds paid to the bank on its overdraft account and the levy of interest under section 234B. The Tribunal found that although cheques for advances to sister-concerns were from the cash credit account, the presence of substantial interest-free funds with the assessee contradicted the diversion claim. The balance sheet analysis revealed surplus interest-free funds, matching the advances made, leading to the allowance of the interest amount. The interest levy under section 234B was held to be chargeable only up to the first assessment, resulting in a favorable outcome for the assessee. en-us Fri, 19 Apr 2002 00:00:00 +0530 Wed, 23 Feb 2011 17:26:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=66361 The Tribunal allowed the appeal of the assessee, a partnership concern in the welding business, in a case involving the disallowance of funds paid to the bank on its overdraft account and the levy of interest under section 234B. The Tribunal found that although cheques for advances to sister-concerns were from the cash credit account, the presence of substantial interest-free funds with the assessee contradicted the diversion claim. The balance sheet analysis revealed surplus interest-free funds, matching the advances made, leading to the allowance of the interest amount. The interest levy under section 234B was held to be chargeable only up to the first assessment, resulting in a favorable outcome for the assessee. Case-Laws Income Tax Fri, 19 Apr 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66361