https://www.taxtmi.com/caselaws?id=450758 ITAT Delhi allowed the assessee's appeal regarding disallowance of interest expenses on loans from various parties. The AO had disallowed interest paid on loans used to advance interest-free loans to the assessee's firm and related concerns. CIT(A) upheld partial disallowance using ratio method. ITAT found the assessee had sufficient own funds (Rs. 25.69 Cr capital against Rs. 4.58 Cr income) to provide interest-free advances, and borrowed funds were used for income-earning purposes with income properly offered to tax. No disallowance warranted. en-us Fri, 08 Mar 2024 00:00:00 +0530 Mon, 11 Mar 2024 12:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450758 ITAT Delhi allowed the assessee's appeal regarding disallowance of interest expenses on loans from various parties. The AO had disallowed interest paid on loans used to advance interest-free loans to the assessee's firm and related concerns. CIT(A) upheld partial disallowance using ratio method. ITAT found the assessee had sufficient own funds (Rs. 25.69 Cr capital against Rs. 4.58 Cr income) to provide interest-free advances, and borrowed funds were used for income-earning purposes with income properly offered to tax. No disallowance warranted. Case-Laws Income Tax Fri, 08 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450758