https://www.taxtmi.com/caselaws?id=179108 The appeals challenged the disallowance of interest expenses claimed by two assessees for the assessment year 2007-08. The Assessing Officer disallowed the interest expenses on grounds of interest-free advances given to certain parties. The CIT(A) upheld the disallowance, emphasizing the lack of business purposes for the advances. The Tribunal concurred, noting insufficient evidence of commercial expediency for the interest-free advances. Citing precedent, the Tribunal upheld the disallowance, emphasizing the purpose of the advances over the source of funds. Consequently, both appeals were dismissed, affirming the disallowance of interest expenses. en-us Tue, 31 Jan 2012 00:00:00 +0530 Mon, 14 Aug 2017 18:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=179108 The appeals challenged the disallowance of interest expenses claimed by two assessees for the assessment year 2007-08. The Assessing Officer disallowed the interest expenses on grounds of interest-free advances given to certain parties. The CIT(A) upheld the disallowance, emphasizing the lack of business purposes for the advances. The Tribunal concurred, noting insufficient evidence of commercial expediency for the interest-free advances. Citing precedent, the Tribunal upheld the disallowance, emphasizing the purpose of the advances over the source of funds. Consequently, both appeals were dismissed, affirming the disallowance of interest expenses. Case-Laws Income Tax Tue, 31 Jan 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=179108