https://www.taxtmi.com/caselaws?id=782799 ITAT allowed the assessee's appeal on disallowance of interest under s.36(1)(iii), holding that, given the substantial own funds compared to the investment of Rs. 29.34 crores in its wholly owned subsidiary, no diversion of borrowed funds for non-business purposes was established and following its earlier orders in assessee's own cases, interest disallowance was unwarranted. On the addition under s.56(2)(b)(viib), ITAT held that the lower authorities erred in rejecting the share valuation on technicalities; it set aside the CIT(A)'s order and directed the assessee to furnish a revised valuation report from an independent accountant using NAV based on book value of land, and directed the AO to recompute income accordingly. en-us Tue, 04 Nov 2025 00:00:00 +0530 Thu, 04 Dec 2025 09:19:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=782799 ITAT allowed the assessee's appeal on disallowance of interest under s.36(1)(iii), holding that, given the substantial own funds compared to the investment of Rs. 29.34 crores in its wholly owned subsidiary, no diversion of borrowed funds for non-business purposes was established and following its earlier orders in assessee's own cases, interest disallowance was unwarranted. On the addition under s.56(2)(b)(viib), ITAT held that the lower authorities erred in rejecting the share valuation on technicalities; it set aside the CIT(A)'s order and directed the assessee to furnish a revised valuation report from an independent accountant using NAV based on book value of land, and directed the AO to recompute income accordingly. Case-Laws Income Tax Tue, 04 Nov 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=782799