https://www.taxtmi.com/caselaws?id=245444 The Tribunal partly allowed the revenue's appeals for statistical purposes and allowed the assessee's appeal for statistical purposes. The disallowance under Section 40(a)(ia) for non-deduction of tax at source on interest paid to foreign parties was confirmed. However, the disallowance under Section 36(1)(iii) for interest on borrowed funds allegedly diverted to related parties as interest-free advances was directed to be re-examined by the AO, considering the principle that interest-free funds are presumed to be used for interest-free advances. en-us Fri, 07 Mar 2014 00:00:00 +0530 Sat, 29 Mar 2014 12:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=245444 The Tribunal partly allowed the revenue's appeals for statistical purposes and allowed the assessee's appeal for statistical purposes. The disallowance under Section 40(a)(ia) for non-deduction of tax at source on interest paid to foreign parties was confirmed. However, the disallowance under Section 36(1)(iii) for interest on borrowed funds allegedly diverted to related parties as interest-free advances was directed to be re-examined by the AO, considering the principle that interest-free funds are presumed to be used for interest-free advances. Case-Laws Income Tax Fri, 07 Mar 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=245444