https://www.taxtmi.com/caselaws?id=376242 The Tribunal ruled in favor of the assessee, allowing the appeal and deleting the additions made by the Assessing Officer. The first issue regarding the treatment of advancement of share application money as an international transaction under transfer pricing provisions was decided in favor of the assessee, emphasizing that interest-free advances for equity conversion do not constitute an international transaction. In the second issue, the disallowance of proportionate interest cost on borrowings under section 36(1)(iii) of the Income Tax Act was also ruled in favor of the assessee, following legal principles that such expenditure for investments cannot be disallowed. en-us Thu, 28 Feb 2019 00:00:00 +0530 Mon, 04 Mar 2019 16:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=376242 The Tribunal ruled in favor of the assessee, allowing the appeal and deleting the additions made by the Assessing Officer. The first issue regarding the treatment of advancement of share application money as an international transaction under transfer pricing provisions was decided in favor of the assessee, emphasizing that interest-free advances for equity conversion do not constitute an international transaction. In the second issue, the disallowance of proportionate interest cost on borrowings under section 36(1)(iii) of the Income Tax Act was also ruled in favor of the assessee, following legal principles that such expenditure for investments cannot be disallowed. Case-Laws Income Tax Thu, 28 Feb 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=376242