https://www.taxtmi.com/caselaws?id=262366 The High Court dismissed the appeal against the order of the Income Tax Appellate Tribunal for the assessment year 2009-10. The disallowance of interest on advances made for non-business purposes was upheld, with the computation based on the average cost of debt for the assessee under section 36(1)(iii) of the Act. The Tribunal's decision emphasized that in cases of interest-free advances from mixed funds, the disallowance should be limited to the average cost of debt to the assessee, considering the lack of distinct identity for funds in a common pool. Penalty proceedings under Section 271(1)(c) were also upheld by the CIT (Appeals). en-us Fri, 31 Jul 2015 00:00:00 +0530 Sat, 08 Aug 2015 06:12:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=262366 The High Court dismissed the appeal against the order of the Income Tax Appellate Tribunal for the assessment year 2009-10. The disallowance of interest on advances made for non-business purposes was upheld, with the computation based on the average cost of debt for the assessee under section 36(1)(iii) of the Act. The Tribunal's decision emphasized that in cases of interest-free advances from mixed funds, the disallowance should be limited to the average cost of debt to the assessee, considering the lack of distinct identity for funds in a common pool. Penalty proceedings under Section 271(1)(c) were also upheld by the CIT (Appeals). Case-Laws Income Tax Fri, 31 Jul 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=262366