https://www.taxtmi.com/caselaws?id=418322 The Tribunal ruled in favor of the assessee, overturning the decision of the Commissioner of Income Tax (Appeals) and the Assessing Officer. The disallowance of interest claimed under section 36(1)(iii) of the Income Tax Act for providing interest-free funds to sister concerns was deemed unjustified. The Tribunal accepted the explanation that the interest-free loans were covered by cash accruals and cash equivalents, not by interest-bearing loan funds claimed as business expenditure. As a result, the Tribunal directed the Assessing Officer to delete the disallowance of Rs. 14,04,336. en-us Fri, 04 Feb 2022 00:00:00 +0530 Mon, 14 Feb 2022 11:47:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=418322 The Tribunal ruled in favor of the assessee, overturning the decision of the Commissioner of Income Tax (Appeals) and the Assessing Officer. The disallowance of interest claimed under section 36(1)(iii) of the Income Tax Act for providing interest-free funds to sister concerns was deemed unjustified. The Tribunal accepted the explanation that the interest-free loans were covered by cash accruals and cash equivalents, not by interest-bearing loan funds claimed as business expenditure. As a result, the Tribunal directed the Assessing Officer to delete the disallowance of Rs. 14,04,336. Case-Laws Income Tax Fri, 04 Feb 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=418322