https://www.taxtmi.com/caselaws?id=761501 ITAT Raipur ruled in favor of the assessee-firm regarding disallowance of interest expenditure under section 36(1)(iii). The tribunal found that the firm had sufficient interest-free funds to cover amounts overdrawn by partners, as evidenced by audited accounts. Following precedents from Chhattisgarh HC and Bombay HC, the tribunal held that disallowance of notional interest on advances made from interest-free funds is not justified. The AO's addition was deemed a misreading of facts, and the Revenue's appeal lacked merit. en-us Wed, 15 May 2024 00:00:00 +0530 Mon, 11 Nov 2024 11:58:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=761501 ITAT Raipur ruled in favor of the assessee-firm regarding disallowance of interest expenditure under section 36(1)(iii). The tribunal found that the firm had sufficient interest-free funds to cover amounts overdrawn by partners, as evidenced by audited accounts. Following precedents from Chhattisgarh HC and Bombay HC, the tribunal held that disallowance of notional interest on advances made from interest-free funds is not justified. The AO's addition was deemed a misreading of facts, and the Revenue's appeal lacked merit. Case-Laws Income Tax Wed, 15 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=761501