https://www.taxtmi.com/caselaws?id=57673 The Tribunal upheld the decisions of the AAC in favor of the assessee for the assessment years 1974-75 and 1975-76. The disallowance of interest on advances made to HUF and an individual was deemed unjustified as the Income Tax Officer failed to establish a direct correlation between borrowed funds and non-interest-bearing advances. Additionally, the claim of bad debt was allowed considering the legitimate efforts of the assessee to recover the debt, despite the Income Tax Officer's disallowance based on the timing of the debt becoming bad. The Department's appeals were dismissed, and the AAC's decisions were upheld. en-us Sat, 09 Sep 1978 00:00:00 +0530 Sat, 11 Dec 2010 14:47:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=57673 The Tribunal upheld the decisions of the AAC in favor of the assessee for the assessment years 1974-75 and 1975-76. The disallowance of interest on advances made to HUF and an individual was deemed unjustified as the Income Tax Officer failed to establish a direct correlation between borrowed funds and non-interest-bearing advances. Additionally, the claim of bad debt was allowed considering the legitimate efforts of the assessee to recover the debt, despite the Income Tax Officer's disallowance based on the timing of the debt becoming bad. The Department's appeals were dismissed, and the AAC's decisions were upheld. Case-Laws Income Tax Sat, 09 Sep 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=57673