https://www.taxtmi.com/caselaws?id=337817 The Tribunal upheld the CIT(A)'s decision, dismissing the Revenue's appeal against the disallowance of interest paid on borrowed money at a higher rate. The judgment emphasized the business purpose of the advances and the availability of owned funds, leading to the deletion of notional interest addition. Consequently, the AO's penalty under section 271(1)(c) was also dismissed. The legal principles surrounding notional income and interest rate computation were pivotal in the case's outcome, resulting in the dismissal of both the Revenue's appeals and the assessee's cross objections. en-us Wed, 09 Nov 2016 00:00:00 +0530 Mon, 16 Jan 2017 12:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=337817 The Tribunal upheld the CIT(A)'s decision, dismissing the Revenue's appeal against the disallowance of interest paid on borrowed money at a higher rate. The judgment emphasized the business purpose of the advances and the availability of owned funds, leading to the deletion of notional interest addition. Consequently, the AO's penalty under section 271(1)(c) was also dismissed. The legal principles surrounding notional income and interest rate computation were pivotal in the case's outcome, resulting in the dismissal of both the Revenue's appeals and the assessee's cross objections. Case-Laws Income Tax Wed, 09 Nov 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=337817