https://www.taxtmi.com/caselaws?id=246934 Interest disallowance for transfers from a cash credit account to family members' savings accounts was reconsidered on the basis of commercial expediency. The Tribunal noted that the first appellate authority had accepted that the diversion was made to oblige the bank, and therefore limiting relief only to transfers kept for a short period was not appropriate. The interest element arising from such diversion was not to be treated as a routine disallowance exercise in the manner adopted by the lower authorities. The interest earned on the diverted funds was directed to be brought to tax in the assessee's hands. en-us Tue, 04 Mar 2014 00:00:00 +0530 Sat, 26 Apr 2014 17:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=246934 Interest disallowance for transfers from a cash credit account to family members' savings accounts was reconsidered on the basis of commercial expediency. The Tribunal noted that the first appellate authority had accepted that the diversion was made to oblige the bank, and therefore limiting relief only to transfers kept for a short period was not appropriate. The interest element arising from such diversion was not to be treated as a routine disallowance exercise in the manner adopted by the lower authorities. The interest earned on the diverted funds was directed to be brought to tax in the assessee's hands. Case-Laws Income Tax Tue, 04 Mar 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=246934