https://www.taxtmi.com/caselaws?id=340657 The Court dismissed the appeal under Section 260-A of the Income Tax Act, 1961, regarding the disallowance of interest on a borrowed amount of Rs. 3,25,03,000.00 for Assessment Year 2002-03. The Court upheld the decision of the Commissioner of Income Tax (Appeals) and the Tribunal, ruling that no interest-bearing funds were utilized for interest-free loans. The Assessing Authority's addition of interest was deemed illegal as it disregarded established principles and precedents. The Court affirmed the Tribunal's decision, emphasizing the importance of using non-interest bearing funds for interest-free advances, and ruled in favor of the assessee. en-us Tue, 24 Jan 2017 00:00:00 +0530 Fri, 24 Mar 2017 10:47:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=340657 The Court dismissed the appeal under Section 260-A of the Income Tax Act, 1961, regarding the disallowance of interest on a borrowed amount of Rs. 3,25,03,000.00 for Assessment Year 2002-03. The Court upheld the decision of the Commissioner of Income Tax (Appeals) and the Tribunal, ruling that no interest-bearing funds were utilized for interest-free loans. The Assessing Authority's addition of interest was deemed illegal as it disregarded established principles and precedents. The Court affirmed the Tribunal's decision, emphasizing the importance of using non-interest bearing funds for interest-free advances, and ruled in favor of the assessee. Case-Laws Income Tax Tue, 24 Jan 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=340657