https://www.taxtmi.com/caselaws?id=378126 The High Court upheld the Tribunal's decision, dismissing the Revenue's appeal challenging the disallowance of interest claimed by the Assessee under Section 36(1)(iii) of the Income Tax Act. The Court affirmed that the Assessee's cash basis accounting and interest payments were commercially expedient and in the business interest. It was held that the Revenue authorities cannot question the commercial expediency of the Assessee's decision to pay lower interest unless shown to be arbitrary or motivated to defeat the Revenue's purpose. The appeal was dismissed, maintaining the Tribunal's finding that the disallowance of interest was unjustified. en-us Thu, 21 Feb 2019 00:00:00 +0530 Mon, 22 Jun 2020 14:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=378126 The High Court upheld the Tribunal's decision, dismissing the Revenue's appeal challenging the disallowance of interest claimed by the Assessee under Section 36(1)(iii) of the Income Tax Act. The Court affirmed that the Assessee's cash basis accounting and interest payments were commercially expedient and in the business interest. It was held that the Revenue authorities cannot question the commercial expediency of the Assessee's decision to pay lower interest unless shown to be arbitrary or motivated to defeat the Revenue's purpose. The appeal was dismissed, maintaining the Tribunal's finding that the disallowance of interest was unjustified. Case-Laws Income Tax Thu, 21 Feb 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=378126