https://www.taxtmi.com/caselaws?id=756010 ITAT Surat allowed the appeal against disallowance of interest at 12% on interest-free advances given to five persons. The tribunal held that advances totaling Rs. 95,70,601 were given for business purposes and the assessee's business decision cannot be questioned by authorities. Since the assessee had adequate interest-free share capital of Rs. 1,63,55,749, exceeding the advances given, no disallowance was permissible. The tribunal relied on Gujarat HC precedent in Gujarat Narmada Valley Fertilizers case, ruling that where sufficient interest-free funds are available, disallowance of interest on borrowed funds is not justified. en-us Tue, 23 Jul 2024 00:00:00 +0530 Wed, 24 Jul 2024 16:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756010 ITAT Surat allowed the appeal against disallowance of interest at 12% on interest-free advances given to five persons. The tribunal held that advances totaling Rs. 95,70,601 were given for business purposes and the assessee's business decision cannot be questioned by authorities. Since the assessee had adequate interest-free share capital of Rs. 1,63,55,749, exceeding the advances given, no disallowance was permissible. The tribunal relied on Gujarat HC precedent in Gujarat Narmada Valley Fertilizers case, ruling that where sufficient interest-free funds are available, disallowance of interest on borrowed funds is not justified. Case-Laws Income Tax Tue, 23 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756010