https://www.taxtmi.com/caselaws?id=377814 The Tribunal allowed the appellant's appeal against the addition under section 36(1)(iii) of the Income Tax Act, 1961. The appellant successfully argued that no fresh loans were taken for the alleged capital work-in-progress (WIP) and had sufficient interest-free funds to cover it. The Tribunal found the appellant's reserves and surplus were significant, with internal accruals capable of funding the investments, leading to the conclusion that no notional interest should be calculated for capitalization. As a result, the addition was overturned, emphasizing the availability of interest-free funds and surplus to support the alleged investment in WIP. en-us Mon, 13 Aug 2018 00:00:00 +0530 Wed, 03 Apr 2019 18:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=377814 The Tribunal allowed the appellant's appeal against the addition under section 36(1)(iii) of the Income Tax Act, 1961. The appellant successfully argued that no fresh loans were taken for the alleged capital work-in-progress (WIP) and had sufficient interest-free funds to cover it. The Tribunal found the appellant's reserves and surplus were significant, with internal accruals capable of funding the investments, leading to the conclusion that no notional interest should be calculated for capitalization. As a result, the addition was overturned, emphasizing the availability of interest-free funds and surplus to support the alleged investment in WIP. Case-Laws Income Tax Mon, 13 Aug 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=377814