https://www.taxtmi.com/caselaws?id=456975 ITAT Mumbai disallowed interest deduction u/s 36(1)(iii) where assessee borrowed funds at interest and advanced same interest-free to sister concern. Tribunal held that while interest on borrowings for advances to subsidiaries on commercial expediency grounds is deductible, assessee failed to establish commercial expediency or genuineness of transaction. Sister concern was incurring losses with borrowings declared non-performing assets. Tribunal found no commercial justification for interest-free loan to allied concern, following precedent in CR. Auluck case. Appeal decided against assessee. en-us Mon, 14 Aug 2023 00:00:00 +0530 Thu, 29 Aug 2024 08:20:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=456975 ITAT Mumbai disallowed interest deduction u/s 36(1)(iii) where assessee borrowed funds at interest and advanced same interest-free to sister concern. Tribunal held that while interest on borrowings for advances to subsidiaries on commercial expediency grounds is deductible, assessee failed to establish commercial expediency or genuineness of transaction. Sister concern was incurring losses with borrowings declared non-performing assets. Tribunal found no commercial justification for interest-free loan to allied concern, following precedent in CR. Auluck case. Appeal decided against assessee. Case-Laws Income Tax Mon, 14 Aug 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=456975