https://www.taxtmi.com/caselaws?id=769212 The ITAT Nagpur-AT ruled in favor of the assessee regarding disallowance of interest on interest-free advances. The tribunal found that the assessee had not paid interest on partners' capital of approximately Rs. 200 lakh and received interest-free loans from relatives totaling Rs. 1.79 lakh. The advances were made to a family member who owned land where the assessee's factory was situated, representing intra-family transactions necessary for business operations. The tribunal concluded that treating these advances as interest-bearing was incorrect, as they constituted capital advances within family members, making the AO's addition unjustified. en-us Wed, 05 Mar 2025 00:00:00 +0530 Tue, 22 Apr 2025 08:31:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=769212 The ITAT Nagpur-AT ruled in favor of the assessee regarding disallowance of interest on interest-free advances. The tribunal found that the assessee had not paid interest on partners' capital of approximately Rs. 200 lakh and received interest-free loans from relatives totaling Rs. 1.79 lakh. The advances were made to a family member who owned land where the assessee's factory was situated, representing intra-family transactions necessary for business operations. The tribunal concluded that treating these advances as interest-bearing was incorrect, as they constituted capital advances within family members, making the AO's addition unjustified. Case-Laws Income Tax Wed, 05 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=769212