https://www.taxtmi.com/caselaws?id=264564 The ITAT ruled in favor of the assessee, finding that the interest claimed on amounts advanced to sister-concerns should not be disallowed for lack of commercial expediency. The ITAT emphasized the business purpose of the advances, citing the assessee's financial standing and principles from previous decisions and the Supreme Court. The AO's disallowance was deemed erroneous due to a lack of proper examination and nexus between the advanced and borrowed funds. The ITAT directed the AO to delete the disallowance of interest claimed on other borrowings in the relevant assessment years. en-us Wed, 23 Sep 2015 00:00:00 +0530 Mon, 28 Sep 2015 10:21:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=264564 The ITAT ruled in favor of the assessee, finding that the interest claimed on amounts advanced to sister-concerns should not be disallowed for lack of commercial expediency. The ITAT emphasized the business purpose of the advances, citing the assessee's financial standing and principles from previous decisions and the Supreme Court. The AO's disallowance was deemed erroneous due to a lack of proper examination and nexus between the advanced and borrowed funds. The ITAT directed the AO to delete the disallowance of interest claimed on other borrowings in the relevant assessment years. Case-Laws Income Tax Wed, 23 Sep 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=264564