https://www.taxtmi.com/caselaws?id=777417 ITAT allowed in part. Applying s.57, it held the assessee must prove source of advances by filing a cash-flow/loan-squared-off details; where funds were borrowed at 12% and re-advanced at 5% for five entities, a 7% interest disallowance is warranted and is to be worked out by the AO. For purported interest-free advances, disallowance is limited to the portion of interest-bearing funds actually advanced interest-free, pending submission of records. AO must recompute accordingly. AO is also directed under s.234A to levy interest only from any extended due date of filing; grounds partly allowed. en-us Tue, 26 Aug 2025 00:00:00 +0530 Fri, 29 Aug 2025 08:56:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=777417 ITAT allowed in part. Applying s.57, it held the assessee must prove source of advances by filing a cash-flow/loan-squared-off details; where funds were borrowed at 12% and re-advanced at 5% for five entities, a 7% interest disallowance is warranted and is to be worked out by the AO. For purported interest-free advances, disallowance is limited to the portion of interest-bearing funds actually advanced interest-free, pending submission of records. AO must recompute accordingly. AO is also directed under s.234A to levy interest only from any extended due date of filing; grounds partly allowed. Case-Laws Income Tax Tue, 26 Aug 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=777417