https://www.taxtmi.com/caselaws?id=314155 ITAT Ahmedabad ruled in favor of the assessee on two issues. First, disallowance under Section 43B for sales tax liability under Sales Tax Deferment Scheme was held unjustified, following consistent ITAT precedents from earlier assessment years. Second, regarding interest disallowance under Section 36(1)(iii) proviso, the AO's proportionate disallowance for funds allegedly used for capital work-in-progress was rejected. The assessee's interest-free funds (Rs. 26.01 crores) exceeded capital work-in-progress investments by ten times, and the AO failed to prove borrowed money was actually utilized for non-business purposes. CIT(A)'s deletion of additions was upheld, with revenue's appeals dismissed. en-us Fri, 12 Jun 2015 00:00:00 +0530 Tue, 21 May 2024 18:00:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=314155 ITAT Ahmedabad ruled in favor of the assessee on two issues. First, disallowance under Section 43B for sales tax liability under Sales Tax Deferment Scheme was held unjustified, following consistent ITAT precedents from earlier assessment years. Second, regarding interest disallowance under Section 36(1)(iii) proviso, the AO's proportionate disallowance for funds allegedly used for capital work-in-progress was rejected. The assessee's interest-free funds (Rs. 26.01 crores) exceeded capital work-in-progress investments by ten times, and the AO failed to prove borrowed money was actually utilized for non-business purposes. CIT(A)'s deletion of additions was upheld, with revenue's appeals dismissed. Case-Laws Income Tax Fri, 12 Jun 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=314155