https://www.taxtmi.com/caselaws?id=434177 The ITAT Pune ruled in favor of the appellant in a tax case involving disallowance under section 36(1)(iii) of the Income Tax Act, 1961. The court found that the loans advanced by the appellant to its sister concern were for business purposes, following past assessments and lack of fresh advances in the relevant year. The Tribunal emphasized the importance of the purpose of expenditure and consistency in similar cases. However, the judgment did not address the second issue of adding interest paid to directors on unsecured loans under section 40A(2)(b) as it was not pursued during the hearing. en-us Thu, 02 Feb 2023 00:00:00 +0530 Sat, 18 Feb 2023 06:49:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=434177 The ITAT Pune ruled in favor of the appellant in a tax case involving disallowance under section 36(1)(iii) of the Income Tax Act, 1961. The court found that the loans advanced by the appellant to its sister concern were for business purposes, following past assessments and lack of fresh advances in the relevant year. The Tribunal emphasized the importance of the purpose of expenditure and consistency in similar cases. However, the judgment did not address the second issue of adding interest paid to directors on unsecured loans under section 40A(2)(b) as it was not pursued during the hearing. Case-Laws Income Tax Thu, 02 Feb 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=434177