https://www.taxtmi.com/caselaws?id=411056 The Tribunal dismissed the Revenue's appeal, affirming the CIT(A)'s decision to delete the disallowance of interest expenses related to loans given to related parties. The Tribunal applied the mixed funds theory, holding that interest-free loans are presumed to be sourced from interest-free funds first. As the assessee had sufficient own funds to cover the loans without charging interest, the Tribunal upheld the decision based on legal precedents and the principles of the mixed funds theory. en-us Mon, 09 Aug 2021 00:00:00 +0530 Sat, 14 Aug 2021 12:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=411056 The Tribunal dismissed the Revenue's appeal, affirming the CIT(A)'s decision to delete the disallowance of interest expenses related to loans given to related parties. The Tribunal applied the mixed funds theory, holding that interest-free loans are presumed to be sourced from interest-free funds first. As the assessee had sufficient own funds to cover the loans without charging interest, the Tribunal upheld the decision based on legal precedents and the principles of the mixed funds theory. Case-Laws Income Tax Mon, 09 Aug 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=411056