https://www.taxtmi.com/caselaws?id=755917 ITAT Nagpur dismissed Revenue's appeal regarding disallowance of financial expenses and additions under section 68. The tribunal upheld CIT(A)'s decision allowing financial charges on discounted letters of credit, finding that despite circular transactions being artificial, the funds were genuinely used for working capital in delivery-based business. The discounting charges paid to banks were legitimate business expenses under section 36(1)(iii). Regarding additions under section 153A assessment, the tribunal found no incriminating evidence to support the additions, as all transactions were recorded in regular books and no corroborative evidence existed against the assessee. en-us Thu, 18 Jul 2024 00:00:00 +0530 Tue, 23 Jul 2024 08:50:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=755917 ITAT Nagpur dismissed Revenue's appeal regarding disallowance of financial expenses and additions under section 68. The tribunal upheld CIT(A)'s decision allowing financial charges on discounted letters of credit, finding that despite circular transactions being artificial, the funds were genuinely used for working capital in delivery-based business. The discounting charges paid to banks were legitimate business expenses under section 36(1)(iii). Regarding additions under section 153A assessment, the tribunal found no incriminating evidence to support the additions, as all transactions were recorded in regular books and no corroborative evidence existed against the assessee. Case-Laws Income Tax Thu, 18 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=755917