https://www.taxtmi.com/caselaws?id=243471 The High Court upheld the decision of the lower authorities, ruling against the assessee in a case concerning the advancement of interest-free loans to a sister concern. It was determined that there was no commercial expediency in the transaction, as the loan was seen as a means to reduce tax liability rather than for genuine business purposes. The court found that the borrowed funds were not utilized for the assessee's business, leading to the disallowance of interest deductions under the Income-tax Act. The appeal was dismissed, affirming the disallowance of interest and lack of commercial expediency in the loan transaction. en-us Wed, 23 Oct 2013 00:00:00 +0530 Sat, 21 Feb 2015 17:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=243471 The High Court upheld the decision of the lower authorities, ruling against the assessee in a case concerning the advancement of interest-free loans to a sister concern. It was determined that there was no commercial expediency in the transaction, as the loan was seen as a means to reduce tax liability rather than for genuine business purposes. The court found that the borrowed funds were not utilized for the assessee's business, leading to the disallowance of interest deductions under the Income-tax Act. The appeal was dismissed, affirming the disallowance of interest and lack of commercial expediency in the loan transaction. Case-Laws Income Tax Wed, 23 Oct 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=243471