https://www.taxtmi.com/caselaws?id=418391 The Tribunal overturned the decision of the Commissioner of Income Tax (Appeals) and directed the Assessing Officer to delete the disallowance of interest under section 36(1)(iii) of the Income Tax Act. The Tribunal emphasized the commercial expediency and business connection between the assessee and the sister concerns, stating that the absence of interest charges on loans did not warrant disallowance. It highlighted that as long as there is a business connection or commercial expediency, the assessee has the freedom to manage its finances accordingly. The Tribunal found the disallowance of interest unfounded and allowed the appeal filed by the assessee. en-us Thu, 10 Feb 2022 00:00:00 +0530 Wed, 16 Feb 2022 08:12:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=418391 The Tribunal overturned the decision of the Commissioner of Income Tax (Appeals) and directed the Assessing Officer to delete the disallowance of interest under section 36(1)(iii) of the Income Tax Act. The Tribunal emphasized the commercial expediency and business connection between the assessee and the sister concerns, stating that the absence of interest charges on loans did not warrant disallowance. It highlighted that as long as there is a business connection or commercial expediency, the assessee has the freedom to manage its finances accordingly. The Tribunal found the disallowance of interest unfounded and allowed the appeal filed by the assessee. Case-Laws Income Tax Thu, 10 Feb 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=418391