https://www.taxtmi.com/caselaws?id=68538 Proportionate interest disallowance on funds advanced interest-free to the assessee's wife was unsustainable where the assessee demonstrated sufficient interest-free capital and other non-interest-bearing funds to cover the advances. The advances were treated as trade debts, and no nexus was shown between those advances and the interest-bearing borrowings. On these facts, the mere absence of interest charged from the wife did not justify disallowance of interest, and the deletion of the addition was upheld in favour of the assessee. en-us Tue, 26 Nov 2002 00:00:00 +0530 Thu, 31 Mar 2011 10:17:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=68538 Proportionate interest disallowance on funds advanced interest-free to the assessee's wife was unsustainable where the assessee demonstrated sufficient interest-free capital and other non-interest-bearing funds to cover the advances. The advances were treated as trade debts, and no nexus was shown between those advances and the interest-bearing borrowings. On these facts, the mere absence of interest charged from the wife did not justify disallowance of interest, and the deletion of the addition was upheld in favour of the assessee. Case-Laws Income Tax Tue, 26 Nov 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=68538