https://www.taxtmi.com/caselaws?id=429468 The appeal was filed against the disallowance of a sum under Section 36(1)(iii) of the Income Tax Act, 1961. The Assessing Officer found a direct nexus between interest-bearing funds and advances made, resulting in a disallowance of Rs. 4,04,200. The Commissioner of Income Tax (Appeals) upheld the disallowance, emphasizing the need for the assessee to establish a clear connection between the advances and business purposes. The Tribunal remanded the matter to the Assessing Officer for further examination, highlighting the importance of analyzing the movement of funds in the cash credit account to establish a valid connection between borrowed funds and loans/advances given. en-us Wed, 21 Sep 2022 00:00:00 +0530 Sat, 29 Oct 2022 09:18:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=429468 The appeal was filed against the disallowance of a sum under Section 36(1)(iii) of the Income Tax Act, 1961. The Assessing Officer found a direct nexus between interest-bearing funds and advances made, resulting in a disallowance of Rs. 4,04,200. The Commissioner of Income Tax (Appeals) upheld the disallowance, emphasizing the need for the assessee to establish a clear connection between the advances and business purposes. The Tribunal remanded the matter to the Assessing Officer for further examination, highlighting the importance of analyzing the movement of funds in the cash credit account to establish a valid connection between borrowed funds and loans/advances given. Case-Laws Income Tax Wed, 21 Sep 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=429468