https://www.taxtmi.com/caselaws?id=756925 ITAT Visakhapatnam reversed CIT(A)'s decision allowing interest-free loans to related parties as business expenditure. The tribunal held that the assessee failed to establish commercial expediency for advances to sister concerns. Regarding loans to a proprietary concern where the assessee's director held 100% ownership, the tribunal found this constituted a benefit to the individual director rather than legitimate business expense. For advances to another related entity, insufficient documentary evidence was provided to prove commercial necessity. The tribunal restored the AO's original assessment, disallowing the expenditure claims. Revenue's appeal was allowed. en-us Thu, 08 Aug 2024 00:00:00 +0530 Sat, 10 Aug 2024 10:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756925 ITAT Visakhapatnam reversed CIT(A)'s decision allowing interest-free loans to related parties as business expenditure. The tribunal held that the assessee failed to establish commercial expediency for advances to sister concerns. Regarding loans to a proprietary concern where the assessee's director held 100% ownership, the tribunal found this constituted a benefit to the individual director rather than legitimate business expense. For advances to another related entity, insufficient documentary evidence was provided to prove commercial necessity. The tribunal restored the AO's original assessment, disallowing the expenditure claims. Revenue's appeal was allowed. Case-Laws Income Tax Thu, 08 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756925