https://www.taxtmi.com/caselaws?id=450655 The Bombay HC upheld ITAT's decision allowing interest expenses, finding that when interest-free and interest-bearing funds are mixed, the presumption favors use of interest-free funds for interest-free advances. The assessee had sufficient interest-free sundry creditors balance to cover advances made. HC also upheld ITAT's deletion of cash credit additions under section 68, noting AO failed to properly examine evidence and confirmations from various creditors were adequately substantiated. Additionally, HC agreed that AO could not reassess additions previously deleted by CIT(A) in original proceedings where Revenue did not appeal, as those matters had attained finality. en-us Wed, 06 Mar 2024 00:00:00 +0530 Wed, 13 May 2026 15:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450655 The Bombay HC upheld ITAT's decision allowing interest expenses, finding that when interest-free and interest-bearing funds are mixed, the presumption favors use of interest-free funds for interest-free advances. The assessee had sufficient interest-free sundry creditors balance to cover advances made. HC also upheld ITAT's deletion of cash credit additions under section 68, noting AO failed to properly examine evidence and confirmations from various creditors were adequately substantiated. Additionally, HC agreed that AO could not reassess additions previously deleted by CIT(A) in original proceedings where Revenue did not appeal, as those matters had attained finality. Case-Laws Income Tax Wed, 06 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450655