https://www.taxtmi.com/caselaws?id=768240 ITAT Chennai allowed the appeal, ruling that gold hire charges paid by the assessee company were allowable business expenses. The company hired gold stock from directors under agreements requiring payment of Rs. 5 per gram per month. The AO disallowed these charges as unrelated to business. However, ITAT found the company had no stock-in-trade of its own and used hired gold for business purposes. The tribunal noted that hiring gold at Rs. 41,85,000 was more economical than borrowing from banks at 12% interest to purchase stock worth Rs. 9,76,12,546, which would cost Rs. 1,08,00,000. The addition was deleted. en-us Fri, 28 Mar 2025 00:00:00 +0530 Thu, 03 Apr 2025 07:50:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768240 ITAT Chennai allowed the appeal, ruling that gold hire charges paid by the assessee company were allowable business expenses. The company hired gold stock from directors under agreements requiring payment of Rs. 5 per gram per month. The AO disallowed these charges as unrelated to business. However, ITAT found the company had no stock-in-trade of its own and used hired gold for business purposes. The tribunal noted that hiring gold at Rs. 41,85,000 was more economical than borrowing from banks at 12% interest to purchase stock worth Rs. 9,76,12,546, which would cost Rs. 1,08,00,000. The addition was deleted. Case-Laws Income Tax Fri, 28 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768240