https://www.taxtmi.com/caselaws?id=466798 Own funds exceeding interest-free advances support a presumption that those advances were financed from share capital, reserves and surplus, eliminating the basis for proportionate interest disallowance. The same presumption applies where own interest-free funds exceed investments generating exempt income, so disallowance under the exempt-income expenditure rules is not warranted. Sales promotion expenditure of a similar nature to an earlier year is subject to restricted, rather than full, disallowance; the restriction is 15% of the expenditure. The resulting assessment adjustments exclude the interest and exempt-income disallowances while retaining the limited sales-promotion disallowance. en-us Tue, 25 Feb 2025 00:00:00 +0530 Fri, 20 Feb 2026 08:22:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=466798 Own funds exceeding interest-free advances support a presumption that those advances were financed from share capital, reserves and surplus, eliminating the basis for proportionate interest disallowance. The same presumption applies where own interest-free funds exceed investments generating exempt income, so disallowance under the exempt-income expenditure rules is not warranted. Sales promotion expenditure of a similar nature to an earlier year is subject to restricted, rather than full, disallowance; the restriction is 15% of the expenditure. The resulting assessment adjustments exclude the interest and exempt-income disallowances while retaining the limited sales-promotion disallowance. Case-Laws Income Tax Tue, 25 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=466798