https://www.taxtmi.com/caselaws?id=412688 The Tribunal ruled in favor of the assessee, directing the AO to delete the disallowance of interest expenses amounting to Rs. 10,88,438 under section 36(1)(iii) of the IT Act. The Tribunal emphasized the business purpose behind extending interest-free loans to wholly owned subsidiary companies and cited relevant case law to support its decision. The appeal by the assessee was allowed, highlighting the importance of establishing a nexus between expenditure and business purpose to avoid disallowance of interest expenses. en-us Wed, 22 Sep 2021 00:00:00 +0530 Thu, 03 Mar 2022 17:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=412688 The Tribunal ruled in favor of the assessee, directing the AO to delete the disallowance of interest expenses amounting to Rs. 10,88,438 under section 36(1)(iii) of the IT Act. The Tribunal emphasized the business purpose behind extending interest-free loans to wholly owned subsidiary companies and cited relevant case law to support its decision. The appeal by the assessee was allowed, highlighting the importance of establishing a nexus between expenditure and business purpose to avoid disallowance of interest expenses. Case-Laws Income Tax Wed, 22 Sep 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=412688