https://www.taxtmi.com/caselaws?id=349522 The ITAT ruled in favor of the assessee, overturning the disallowance of interest expenditure towards advances to subsidiaries. The ITAT found that the assessee had sufficient interest-free funds from share capital to cover the advances, indicating commercial expediency. Relying on relevant case law, the ITAT held that if interest-free funds were available to support the investments, the presumption would be in favor of the assessee. Consequently, the AO was directed to delete the additions made for disallowance of interest expenditure under the Income Tax Act sections in question. en-us Fri, 08 Sep 2017 00:00:00 +0530 Mon, 16 Oct 2017 09:18:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=349522 The ITAT ruled in favor of the assessee, overturning the disallowance of interest expenditure towards advances to subsidiaries. The ITAT found that the assessee had sufficient interest-free funds from share capital to cover the advances, indicating commercial expediency. Relying on relevant case law, the ITAT held that if interest-free funds were available to support the investments, the presumption would be in favor of the assessee. Consequently, the AO was directed to delete the additions made for disallowance of interest expenditure under the Income Tax Act sections in question. Case-Laws Income Tax Fri, 08 Sep 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=349522