https://www.taxtmi.com/caselaws?id=260872 The tribunal upheld the CIT(A)'s decision in a case involving the disallowance of interest under section 36(1)(iii) of the Income Tax Act and excessive remuneration paid to directors compared to a sister company. The Revenue's appeals were dismissed as the tribunal found no lack of commercial expediency in the interest disallowance and no grounds for suspicion on the fair market value of services rendered by the directors. The tribunal emphasized the business relationship between the parties and the legitimate purposes behind the financial transactions, in line with the Supreme Court's precedent in S.A. Builders Ltd. case. en-us Wed, 10 Jun 2015 00:00:00 +0530 Fri, 26 Jun 2015 10:23:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=260872 The tribunal upheld the CIT(A)'s decision in a case involving the disallowance of interest under section 36(1)(iii) of the Income Tax Act and excessive remuneration paid to directors compared to a sister company. The Revenue's appeals were dismissed as the tribunal found no lack of commercial expediency in the interest disallowance and no grounds for suspicion on the fair market value of services rendered by the directors. The tribunal emphasized the business relationship between the parties and the legitimate purposes behind the financial transactions, in line with the Supreme Court's precedent in S.A. Builders Ltd. case. Case-Laws Income Tax Wed, 10 Jun 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=260872