https://www.taxtmi.com/caselaws?id=450044 The ITAT Delhi ruled on two issues in favor of the assessee. First, regarding disallowance of interest expenses on interest-free advances, the tribunal found the assessee had sufficient interest-free surplus funds available, and since the loans were given in earlier assessment years, directed the AO to delete the disallowance. Second, concerning income estimation through 7.33% GP rate application due to alleged stock differences between books and bank hypothecation statement, the tribunal held that the AO improperly relied on bank statement for closing stock while using book figures for opening stock, violating consistency principles, and decided in favor of the assessee. en-us Wed, 21 Feb 2024 00:00:00 +0530 Sat, 24 Feb 2024 12:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450044 The ITAT Delhi ruled on two issues in favor of the assessee. First, regarding disallowance of interest expenses on interest-free advances, the tribunal found the assessee had sufficient interest-free surplus funds available, and since the loans were given in earlier assessment years, directed the AO to delete the disallowance. Second, concerning income estimation through 7.33% GP rate application due to alleged stock differences between books and bank hypothecation statement, the tribunal held that the AO improperly relied on bank statement for closing stock while using book figures for opening stock, violating consistency principles, and decided in favor of the assessee. Case-Laws Income Tax Wed, 21 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450044