https://www.taxtmi.com/caselaws?id=354145 The Tribunal upheld the First Appellate Authority's decision, dismissing the Department's appeal and affirming that no disallowance should be made out of interest expenditure. The Tribunal found that the interest-free advances and construction expenses were adequately covered by a significant interest-free surplus fund available to the assessee, and the borrowed funds were utilized exclusively for diamond exports, not for the construction of factory premises. As there was no direct nexus between borrowed funds and interest-free activities, the Tribunal concluded that the Department's appeal lacked merit. en-us Fri, 15 Dec 2017 00:00:00 +0530 Fri, 19 Jan 2018 08:17:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=354145 The Tribunal upheld the First Appellate Authority's decision, dismissing the Department's appeal and affirming that no disallowance should be made out of interest expenditure. The Tribunal found that the interest-free advances and construction expenses were adequately covered by a significant interest-free surplus fund available to the assessee, and the borrowed funds were utilized exclusively for diamond exports, not for the construction of factory premises. As there was no direct nexus between borrowed funds and interest-free activities, the Tribunal concluded that the Department's appeal lacked merit. Case-Laws Income Tax Fri, 15 Dec 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=354145