https://www.taxtmi.com/caselaws?id=312020 The ITAT allowed the appeal of the appellant, a private limited company, overturning the disallowance of interest expenses amounting to Rs.4,61,419/- by the AO. The disallowance was initially upheld by the CIT(A) on the grounds that borrowed funds were not used for business purposes. The ITAT found that the appellant had sufficient interest-free funds to cover the advances made to its sister concern, aligning with similar favorable decisions in previous assessment years. The ITAT concluded that each assessment year should be considered independently and rejected the lower authorities' addition. en-us Fri, 03 May 2019 00:00:00 +0530 Sun, 28 Jan 2024 10:39:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=312020 The ITAT allowed the appeal of the appellant, a private limited company, overturning the disallowance of interest expenses amounting to Rs.4,61,419/- by the AO. The disallowance was initially upheld by the CIT(A) on the grounds that borrowed funds were not used for business purposes. The ITAT found that the appellant had sufficient interest-free funds to cover the advances made to its sister concern, aligning with similar favorable decisions in previous assessment years. The ITAT concluded that each assessment year should be considered independently and rejected the lower authorities' addition. Case-Laws Income Tax Fri, 03 May 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=312020