https://www.taxtmi.com/highlights?id=79705 Advances given to 5 persons without charging interest were for business purposes. Non-installation of machinery or renovation in subsequent period due to non-viability cannot negate the business purpose. Assessee decided not to proceed with its plan due to bad market condition, which is a valid business decision and consequential expenditure cannot be disallowed. Assessee had sufficient interest-free capital exceeding the interest-free advances, hence disallowance of interest is impermissible as per jurisdictional High Court precedents. en-us Thu, 25 Jul 2024 08:05:32 +0530 Thu, 25 Jul 2024 08:05:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=79705 Advances given to 5 persons without charging interest were for business purposes. Non-installation of machinery or renovation in subsequent period due to non-viability cannot negate the business purpose. Assessee decided not to proceed with its plan due to bad market condition, which is a valid business decision and consequential expenditure cannot be disallowed. Assessee had sufficient interest-free capital exceeding the interest-free advances, hence disallowance of interest is impermissible as per jurisdictional High Court precedents. Highlights Income Tax Thu, 25 Jul 2024 08:05:32 +0530 https://www.taxtmi.com/highlights?id=79705