https://www.taxtmi.com/caselaws?id=211404 The Tribunal ruled in favor of the assessee on both issues. The disallowance of interest under Section 36(1)(iii) was deleted as the assessee had sufficient interest-free funds to cover the interest-free advances. Additionally, the disallowance of accrued interest under Section 40(a)(ia) was overturned, as the liability to pay interest had accrued, and the interest deductions were deemed allowable. The Tribunal clarified that Section 40(a)(ia) could not be invoked in this case due to the non-crediting or non-payment of interest during the year. en-us Wed, 25 Jan 2012 00:00:00 +0530 Wed, 20 Apr 2016 15:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=211404 The Tribunal ruled in favor of the assessee on both issues. The disallowance of interest under Section 36(1)(iii) was deleted as the assessee had sufficient interest-free funds to cover the interest-free advances. Additionally, the disallowance of accrued interest under Section 40(a)(ia) was overturned, as the liability to pay interest had accrued, and the interest deductions were deemed allowable. The Tribunal clarified that Section 40(a)(ia) could not be invoked in this case due to the non-crediting or non-payment of interest during the year. Case-Laws Income Tax Wed, 25 Jan 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=211404