https://www.taxtmi.com/caselaws?id=766648 The ITAT Dehradun allowed the assessee's appeal regarding disallowance of interest on government loans. The tribunal held that under mercantile accounting system, the assessee was bound to record interest payable on loans from UP Government. The AO disallowed the interest claiming it was never actually paid, but failed to demonstrate any change in loan nature, interest waiver, or conversion to non-interest bearing loan by the government. The tribunal found no material supporting the AO's disallowance and ruled that CIT(A) was unjustified in sustaining it, deciding in favor of the assessee based on accounting consistency principles. en-us Thu, 27 Feb 2025 00:00:00 +0530 Sat, 01 Mar 2025 08:25:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=766648 The ITAT Dehradun allowed the assessee's appeal regarding disallowance of interest on government loans. The tribunal held that under mercantile accounting system, the assessee was bound to record interest payable on loans from UP Government. The AO disallowed the interest claiming it was never actually paid, but failed to demonstrate any change in loan nature, interest waiver, or conversion to non-interest bearing loan by the government. The tribunal found no material supporting the AO's disallowance and ruled that CIT(A) was unjustified in sustaining it, deciding in favor of the assessee based on accounting consistency principles. Case-Laws Income Tax Thu, 27 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=766648