https://www.taxtmi.com/caselaws?id=337690 The Tribunal upheld the disallowance of interest payment on borrowed funds for non-business purposes, amounting to Rs. 30.80 lakhs, due to the lack of a business link between the advances and the company. The Tribunal rejected the argument that non-interest bearing loans were utilized from capital reserves, emphasizing the significant bank loans taken by the company, indicating a lack of surplus funds for interest-free advances. The appeal was dismissed, with the Tribunal deeming the case laws relied upon by the assessee as not applicable to the specific circumstances of this case. en-us Thu, 10 Nov 2016 00:00:00 +0530 Sat, 14 Jan 2017 07:22:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=337690 The Tribunal upheld the disallowance of interest payment on borrowed funds for non-business purposes, amounting to Rs. 30.80 lakhs, due to the lack of a business link between the advances and the company. The Tribunal rejected the argument that non-interest bearing loans were utilized from capital reserves, emphasizing the significant bank loans taken by the company, indicating a lack of surplus funds for interest-free advances. The appeal was dismissed, with the Tribunal deeming the case laws relied upon by the assessee as not applicable to the specific circumstances of this case. Case-Laws Income Tax Thu, 10 Nov 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=337690