https://www.taxtmi.com/caselaws?id=444837 ITAT Chennai ruled in favor of the assessee on two issues. First, regarding interest disallowance under Section 36(1)(iii) for interest-free advances to group concerns, the tribunal held that where interest-free funds (share capital and reserves) exceed advances made, presumption favors that advances were from interest-free funds unless AO proves otherwise. Second, on sponsorship expenses disallowance under Section 37(1), the tribunal found the Rs. 2.50 crore annual sponsorship payment was backed by valid agreements for business promotional activities, and AO cannot question commercial wisdom regarding business promotion methods. en-us Fri, 20 Oct 2023 00:00:00 +0530 Thu, 26 Oct 2023 09:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=444837 ITAT Chennai ruled in favor of the assessee on two issues. First, regarding interest disallowance under Section 36(1)(iii) for interest-free advances to group concerns, the tribunal held that where interest-free funds (share capital and reserves) exceed advances made, presumption favors that advances were from interest-free funds unless AO proves otherwise. Second, on sponsorship expenses disallowance under Section 37(1), the tribunal found the Rs. 2.50 crore annual sponsorship payment was backed by valid agreements for business promotional activities, and AO cannot question commercial wisdom regarding business promotion methods. Case-Laws Income Tax Fri, 20 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=444837