https://www.taxtmi.com/caselaws?id=456425 The ITAT Lucknow allowed the assessee's appeal on all grounds. The tribunal deleted the disallowance of interest under section 36(1)(iii), finding that the assessee's capital and profits exceeded the interest-free advances, negating any nexus between borrowed funds and advances. The disallowance of gratuity scheme contributions to LIC was reversed, with the tribunal accepting it as allowable expenditure based on established case law. The addition under section 68 for customer advances was also deleted, as the tribunal found the advances were properly adjusted against sales in subsequent financial years, contrary to the CIT(A)'s findings. en-us Thu, 28 Jul 2022 00:00:00 +0530 Wed, 24 Jul 2024 21:19:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=456425 The ITAT Lucknow allowed the assessee's appeal on all grounds. The tribunal deleted the disallowance of interest under section 36(1)(iii), finding that the assessee's capital and profits exceeded the interest-free advances, negating any nexus between borrowed funds and advances. The disallowance of gratuity scheme contributions to LIC was reversed, with the tribunal accepting it as allowable expenditure based on established case law. The addition under section 68 for customer advances was also deleted, as the tribunal found the advances were properly adjusted against sales in subsequent financial years, contrary to the CIT(A)'s findings. Case-Laws Income Tax Thu, 28 Jul 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=456425