AO to Verify Assessee's Own Funds vs. Interest-Free Advances Before Disallowing Interest Expenses.

AO to Verify Assessee's Own Funds vs. Interest-Free Advances Before Disallowing Interest Expenses. https://www.taxtmi.com/highlights?id=59378 Addition made on account of diversion of fund - disallowance of interest expenses - there cannot be any disallowance of interest expenses provided the own fund of the assessee exceeds the interest free advance. - AO directed to verify whether the own fund of the assessee exceeds the amount of interest free advances and adjudicate the issue afresh - AT en-us Wed, 25 Aug 2021 12:43:04 +0530 Wed, 25 Aug 2021 12:43:04 +0530 TaxTMI RSS Generator AO to Verify Assessee's Own Funds vs. Interest-Free Advances Before Disallowing Interest Expenses. https://www.taxtmi.com/highlights?id=59378 Addition made on account of diversion of fund - disallowance of interest expenses - there cannot be any disallowance of interest expenses provided the own fund of the assessee exceeds the interest free advance. - AO directed to verify whether the own fund of the assessee exceeds the amount of interest free advances and adjudicate the issue afresh - AT Highlights Income Tax Wed, 25 Aug 2021 12:43:04 +0530 https://www.taxtmi.com/highlights?id=59378