https://www.taxtmi.com/highlights?id=84053 The Income Tax Appellate Tribunal (ITAT) decided the following: Disallowance of proportionate interest expenses was unjustified as the assessee had sufficient interest-free funds exceeding the non-income-generating investments. The Assessing Officer (AO) failed to establish a direct nexus between borrowed funds and investments, rendering the disallowance unsustainable. The Tribunal held in favor of the assessee on this issue. Additions u/s 68 for unexplained cash credits were deleted. The assessee explained the sources of cash deposits, including business receipts, pre-existing cash balances, and sale proceeds. The AO did not verify the lenders' creditworthiness, shifting the burden of proof to the Revenue. The Tribunal found the loans suff..... en-us Tue, 17 Dec 2024 08:42:41 +0530 Tue, 17 Dec 2024 08:42:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=84053 The Income Tax Appellate Tribunal (ITAT) decided the following: Disallowance of proportionate interest expenses was unjustified as the assessee had sufficient interest-free funds exceeding the non-income-generating investments. The Assessing Officer (AO) failed to establish a direct nexus between borrowed funds and investments, rendering the disallowance unsustainable. The Tribunal held in favor of the assessee on this issue. Additions u/s 68 for unexplained cash credits were deleted. The assessee explained the sources of cash deposits, including business receipts, pre-existing cash balances, and sale proceeds. The AO did not verify the lenders' creditworthiness, shifting the burden of proof to the Revenue. The Tribunal found the loans suff..... Highlights Income Tax Tue, 17 Dec 2024 08:42:41 +0530 https://www.taxtmi.com/highlights?id=84053