https://www.taxtmi.com/caselaws?id=774601 ITAT Delhi upheld CIT(A)'s deletion of addition for unexplained sundry creditors, finding CIT(A) properly admitted additional evidence including agency agreement justifying outstanding balance adjustments. Tribunal confirmed AO's jurisdiction in limited scrutiny assessment for verifying sundry creditors but noted section 14A disallowance deletion was final as unchallenged by revenue. Regarding interest disallowance under section 36(1)(iii), ITAT allowed assessee's appeal, holding that with sufficient interest-free funds of Rs. 3.15 crores against advances of Rs. 2.23 crores, no disallowance warranted following Supreme Court precedent in Reliance Industries case establishing presumption that investments made from interest-free funds when available. en-us Wed, 09 Jul 2025 00:00:00 +0530 Fri, 11 Jul 2025 08:39:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774601 ITAT Delhi upheld CIT(A)'s deletion of addition for unexplained sundry creditors, finding CIT(A) properly admitted additional evidence including agency agreement justifying outstanding balance adjustments. Tribunal confirmed AO's jurisdiction in limited scrutiny assessment for verifying sundry creditors but noted section 14A disallowance deletion was final as unchallenged by revenue. Regarding interest disallowance under section 36(1)(iii), ITAT allowed assessee's appeal, holding that with sufficient interest-free funds of Rs. 3.15 crores against advances of Rs. 2.23 crores, no disallowance warranted following Supreme Court precedent in Reliance Industries case establishing presumption that investments made from interest-free funds when available. Case-Laws Income Tax Wed, 09 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774601