https://www.taxtmi.com/caselaws?id=56007 The disallowance of interest amounting to Rs. 21,250 by the Assessing Officer was overturned by the ITAT. The ITAT found that the borrowed funds were used for genuine business purposes, emphasizing that reducing tax liability does not automatically indicate a colorable transaction. Citing the Supreme Court's decision in Azadi Bachao Andolan, the ITAT concluded that the disallowance was unjustified and deleted it. The ITAT also stressed the importance of consistency in assessing the same assessee from year to year unless substantial reasons justify deviation, ultimately allowing the appeal and reversing the disallowance. en-us Fri, 19 Mar 2004 00:00:00 +0530 Thu, 28 Jun 2012 12:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=56007 The disallowance of interest amounting to Rs. 21,250 by the Assessing Officer was overturned by the ITAT. The ITAT found that the borrowed funds were used for genuine business purposes, emphasizing that reducing tax liability does not automatically indicate a colorable transaction. Citing the Supreme Court's decision in Azadi Bachao Andolan, the ITAT concluded that the disallowance was unjustified and deleted it. The ITAT also stressed the importance of consistency in assessing the same assessee from year to year unless substantial reasons justify deviation, ultimately allowing the appeal and reversing the disallowance. Case-Laws Income Tax Fri, 19 Mar 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=56007