https://www.taxtmi.com/caselaws?id=193012 The ITAT ruled in favor of the assessee in a case involving the disallowance of discounts and interest amounts. It held that the Income Tax Act does not permit disallowance solely based on non-compliance with industry guidelines, directing the deletion of the discount disallowance. Regarding the interest amount disallowance, the ITAT allowed it partially, emphasizing that advances given to employees for personal needs out of business expediency are permissible. The decision underscored the importance of business expediency in financial transactions and highlighted the need for compliance with statutory provisions while considering commercial realities. en-us Wed, 16 Mar 2016 00:00:00 +0530 Sat, 08 Jul 2017 07:40:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=193012 The ITAT ruled in favor of the assessee in a case involving the disallowance of discounts and interest amounts. It held that the Income Tax Act does not permit disallowance solely based on non-compliance with industry guidelines, directing the deletion of the discount disallowance. Regarding the interest amount disallowance, the ITAT allowed it partially, emphasizing that advances given to employees for personal needs out of business expediency are permissible. The decision underscored the importance of business expediency in financial transactions and highlighted the need for compliance with statutory provisions while considering commercial realities. Case-Laws Income Tax Wed, 16 Mar 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=193012