https://www.taxtmi.com/caselaws?id=189156 The tribunal upheld the disallowance of interest payments to M/s. Emjey Enterprises and M/s. Kantilal Manilal & Co. Pvt. Ltd., ruling that the transactions were a colorable device to avoid tax under section 40(b) of the Income-tax Act. The tribunal found that the interest payments were routed through sister concerns without actual movement of funds, indicating tax avoidance. Additionally, the tribunal rejected the consideration of credit balances obtained through journal entries for calculating interest payable, emphasizing that the transactions were not genuine and were designed to circumvent tax laws. The appeal was dismissed, affirming the disallowance of interest payments. en-us Wed, 17 Oct 2001 00:00:00 +0530 Thu, 29 Dec 2016 15:39:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=189156 The tribunal upheld the disallowance of interest payments to M/s. Emjey Enterprises and M/s. Kantilal Manilal & Co. Pvt. Ltd., ruling that the transactions were a colorable device to avoid tax under section 40(b) of the Income-tax Act. The tribunal found that the interest payments were routed through sister concerns without actual movement of funds, indicating tax avoidance. Additionally, the tribunal rejected the consideration of credit balances obtained through journal entries for calculating interest payable, emphasizing that the transactions were not genuine and were designed to circumvent tax laws. The appeal was dismissed, affirming the disallowance of interest payments. Case-Laws Income Tax Wed, 17 Oct 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=189156