https://www.taxtmi.com/caselaws?id=389525 The Tribunal upheld the disallowance of interest paid amounting to Rs. 20,90,000 due to diversion of funds to sister-concern without proving commercial expediency. Additionally, the disallowance of Rs. 25,25,000 under section 40(a)(ia) was affirmed as the assessee failed to deduct tax at source on interest payments to directors. The appeal was dismissed on both issues, emphasizing the necessity of complying with tax deduction requirements and demonstrating commercial expediency for interest deductions. en-us Mon, 02 Dec 2019 00:00:00 +0530 Tue, 10 Dec 2019 12:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=389525 The Tribunal upheld the disallowance of interest paid amounting to Rs. 20,90,000 due to diversion of funds to sister-concern without proving commercial expediency. Additionally, the disallowance of Rs. 25,25,000 under section 40(a)(ia) was affirmed as the assessee failed to deduct tax at source on interest payments to directors. The appeal was dismissed on both issues, emphasizing the necessity of complying with tax deduction requirements and demonstrating commercial expediency for interest deductions. Case-Laws Income Tax Mon, 02 Dec 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=389525