https://www.taxtmi.com/caselaws?id=373589 The Appellant challenged the disallowance of interest on borrowed funds under Section 36(1)(iii) of the Income Tax Act, 1961. The Tribunal remanded the case, emphasizing the necessity of establishing commercial expediency for interest-free loans to sister concerns. The Assessing Officer's decision lacked sufficient reasoning and relied on outdated legal grounds, prompting a fresh assessment. The judgment underscored the broad interpretation of "commercial expediency" in business expenditure, citing relevant legal precedents. en-us Mon, 17 Dec 2018 00:00:00 +0530 Wed, 16 Jan 2019 09:58:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=373589 The Appellant challenged the disallowance of interest on borrowed funds under Section 36(1)(iii) of the Income Tax Act, 1961. The Tribunal remanded the case, emphasizing the necessity of establishing commercial expediency for interest-free loans to sister concerns. The Assessing Officer's decision lacked sufficient reasoning and relied on outdated legal grounds, prompting a fresh assessment. The judgment underscored the broad interpretation of "commercial expediency" in business expenditure, citing relevant legal precedents. Case-Laws Income Tax Mon, 17 Dec 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=373589