https://www.taxtmi.com/caselaws?id=326048 The Tribunal overturned the disallowance of interest under sec. 36(1)(iii) of the Income-tax Act, 1961, amounting to Rs. 41,65,686. It found no nexus between the borrowed funds and the interest-free advances made to the director, emphasizing the availability of non-interest bearing funds and the source of the loan from sale proceeds, not borrowed funds. The Tribunal held that the disallowance was unjustified, directing the Assessing Officer to delete the interest disallowance. The appeal was allowed, setting aside the orders of the lower authorities regarding the disallowance of interest. en-us Mon, 29 Feb 2016 00:00:00 +0530 Fri, 01 Apr 2016 14:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=326048 The Tribunal overturned the disallowance of interest under sec. 36(1)(iii) of the Income-tax Act, 1961, amounting to Rs. 41,65,686. It found no nexus between the borrowed funds and the interest-free advances made to the director, emphasizing the availability of non-interest bearing funds and the source of the loan from sale proceeds, not borrowed funds. The Tribunal held that the disallowance was unjustified, directing the Assessing Officer to delete the interest disallowance. The appeal was allowed, setting aside the orders of the lower authorities regarding the disallowance of interest. Case-Laws Income Tax Mon, 29 Feb 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=326048