https://www.taxtmi.com/caselaws?id=325632 The Tribunal allowed the appeal of the assessee, directing the Assessing Officer to delete the disallowance of Rs. 22,47,100 under Section 36(1)(iii) of the Income Tax Act, 1961. The Tribunal emphasized the concept of "commercial expediency" for allowing interest deductions and held that the assessee had sufficient own funds to cover the advances to sister concerns, rendering the addition by the AO unjustified. The decision was based on the assessee's failure to prove the business purpose of the funds advanced and previous Tribunal and High Court decisions supporting the assessee's position. en-us Tue, 09 Feb 2016 00:00:00 +0530 Fri, 25 Mar 2016 09:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=325632 The Tribunal allowed the appeal of the assessee, directing the Assessing Officer to delete the disallowance of Rs. 22,47,100 under Section 36(1)(iii) of the Income Tax Act, 1961. The Tribunal emphasized the concept of "commercial expediency" for allowing interest deductions and held that the assessee had sufficient own funds to cover the advances to sister concerns, rendering the addition by the AO unjustified. The decision was based on the assessee's failure to prove the business purpose of the funds advanced and previous Tribunal and High Court decisions supporting the assessee's position. Case-Laws Income Tax Tue, 09 Feb 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=325632