https://www.taxtmi.com/caselaws?id=423118 The Tribunal upheld the disallowance of interest expenses under section 36(1)(iii) of the Income Tax Act, 1961, related to loans provided to a director for non-business purposes. The decision emphasized the requirement to establish commercial expediency in such transactions to avoid disallowances. The Tribunal found the lack of evidence supporting a valid business connection between the companies involved, leading to the dismissal of the appeal and reaffirming the importance of demonstrating business purposes in financial dealings with directors or related entities to adhere to tax laws. en-us Fri, 13 May 2022 00:00:00 +0530 Mon, 30 May 2022 08:46:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=423118 The Tribunal upheld the disallowance of interest expenses under section 36(1)(iii) of the Income Tax Act, 1961, related to loans provided to a director for non-business purposes. The decision emphasized the requirement to establish commercial expediency in such transactions to avoid disallowances. The Tribunal found the lack of evidence supporting a valid business connection between the companies involved, leading to the dismissal of the appeal and reaffirming the importance of demonstrating business purposes in financial dealings with directors or related entities to adhere to tax laws. Case-Laws Income Tax Fri, 13 May 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=423118