https://www.taxtmi.com/caselaws?id=797229 Interest disallowance on interest-free supplier advances requires an established nexus between interest-bearing borrowings and diversion of borrowed funds for non-business purposes. Consistent exclusion of VAT from both opening and closing stock requires corresponding adjustments to opening stock, purchases and sales; adding VAT only to closing stock distorts profit and is tax neutral after full adjustments. Taxation of outstanding creditor balances as cessation of trading liabilities requires remission or cessation during the relevant year and prior allowance of the liability as a deduction. Continuing creditor transactions or subsequent set-off arrangements supported by confirmation do not alone establish cessation. en-us Wed, 12 Aug 2026 00:00:00 +0530 Wed, 19 Aug 2026 08:20:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=797229 Interest disallowance on interest-free supplier advances requires an established nexus between interest-bearing borrowings and diversion of borrowed funds for non-business purposes. Consistent exclusion of VAT from both opening and closing stock requires corresponding adjustments to opening stock, purchases and sales; adding VAT only to closing stock distorts profit and is tax neutral after full adjustments. Taxation of outstanding creditor balances as cessation of trading liabilities requires remission or cessation during the relevant year and prior allowance of the liability as a deduction. Continuing creditor transactions or subsequent set-off arrangements supported by confirmation do not alone establish cessation. Case-Laws Income Tax Wed, 12 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=797229