https://www.taxtmi.com/caselaws?id=760138 The ITAT Mumbai held that where an assessee maintains a pool of funds comprising both interest-free and interest-bearing funds, advances to subsidiaries and related parties are presumed made from interest-free funds if sufficient to cover such advances. The AO cannot question commercial wisdom but only examine whether interest-free funds are adequate. The CIT(A) found facts identical to a previous favorable tribunal decision for AY 2015-16. The tribunal confirmed the assessee had sufficient interest-free funds to cover advances to related parties, except one entity charged 9% interest. Additions for excess interest expenditure, brokerage, commission and bank charges were deleted, deciding against revenue. en-us Tue, 16 Apr 2024 00:00:00 +0530 Thu, 17 Oct 2024 09:24:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=760138 The ITAT Mumbai held that where an assessee maintains a pool of funds comprising both interest-free and interest-bearing funds, advances to subsidiaries and related parties are presumed made from interest-free funds if sufficient to cover such advances. The AO cannot question commercial wisdom but only examine whether interest-free funds are adequate. The CIT(A) found facts identical to a previous favorable tribunal decision for AY 2015-16. The tribunal confirmed the assessee had sufficient interest-free funds to cover advances to related parties, except one entity charged 9% interest. Additions for excess interest expenditure, brokerage, commission and bank charges were deleted, deciding against revenue. Case-Laws Income Tax Tue, 16 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=760138