https://www.taxtmi.com/caselaws?id=202286 The court held that the interest expenses on borrowed funds advanced as interest-free loans to partnership firms were rightly disallowed as they did not serve a business purpose. The disallowance of interest was restored, overturning the Tribunal's decision. Regarding the disallowance of gratuity contribution premium, the court allowed the claim if the payment was made before filing the return, granting the assessee an opportunity to prove the payment timing. The appeal was partially allowed on this issue, emphasizing the need for proper verification of payment timing for deductions under section 43B(b) of the Income-tax Act. en-us Tue, 06 Oct 2009 00:00:00 +0530 Wed, 02 Jan 2013 12:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=202286 The court held that the interest expenses on borrowed funds advanced as interest-free loans to partnership firms were rightly disallowed as they did not serve a business purpose. The disallowance of interest was restored, overturning the Tribunal's decision. Regarding the disallowance of gratuity contribution premium, the court allowed the claim if the payment was made before filing the return, granting the assessee an opportunity to prove the payment timing. The appeal was partially allowed on this issue, emphasizing the need for proper verification of payment timing for deductions under section 43B(b) of the Income-tax Act. Case-Laws Income Tax Tue, 06 Oct 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=202286