https://www.taxtmi.com/highlights?id=69672 Disallowance of excess interest paid - diversion of funds for non-business purposes - It is immaterial how the loan was treated by the Director - as far as the assessee is concerned, assessee has borrowed funds @18% without there being any other funds i.e. interest free funds in the business, therefore, it clearly shows that assessee has utilized interest bearing funds to lend the money to one of its Director with a considerable difference of interest rate i.e., 4.5%. - Therefore, there is diversion of funds for non-business purpose. - AT en-us Tue, 09 May 2023 08:06:37 +0530 Tue, 09 May 2023 08:06:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=69672 Disallowance of excess interest paid - diversion of funds for non-business purposes - It is immaterial how the loan was treated by the Director - as far as the assessee is concerned, assessee has borrowed funds @18% without there being any other funds i.e. interest free funds in the business, therefore, it clearly shows that assessee has utilized interest bearing funds to lend the money to one of its Director with a considerable difference of interest rate i.e., 4.5%. - Therefore, there is diversion of funds for non-business purpose. - AT Highlights Income Tax Tue, 09 May 2023 08:06:37 +0530 https://www.taxtmi.com/highlights?id=69672