https://www.taxtmi.com/caselaws?id=770516 ITAT Mumbai held that additions made under section 57 for interest expenses were unjustified and liable to be deleted. The assessee, a business entity, offered fixed deposits as security for enhancing loan security and bank guarantees while paying interest on bank loans and charges. The tribunal found that adjustments between interest paid and received were tax neutral, having no tax effect on the assessee. The adjustment would be reflected in the P&L account regardless, making the disallowance inappropriate. The revenue's reliance on CIT vs Dr.V.P. Gopinathan was deemed factually distinguishable from the present case. en-us Fri, 09 May 2025 00:00:00 +0530 Mon, 12 May 2025 09:20:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=770516 ITAT Mumbai held that additions made under section 57 for interest expenses were unjustified and liable to be deleted. The assessee, a business entity, offered fixed deposits as security for enhancing loan security and bank guarantees while paying interest on bank loans and charges. The tribunal found that adjustments between interest paid and received were tax neutral, having no tax effect on the assessee. The adjustment would be reflected in the P&L account regardless, making the disallowance inappropriate. The revenue's reliance on CIT vs Dr.V.P. Gopinathan was deemed factually distinguishable from the present case. Case-Laws Income Tax Fri, 09 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=770516