2022 (2) TMI 573

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....IT ORDER Per Mahavir Singh, VP This appeal by the assessee is arising out of the order of Commissioner of Income Tax (Appeals) in ITA No. 235/2017-18/CIT(A)-15 dated 22.03.2019. The assessment was framed by the Income Tax Officer, Corporate Ward 6(4), Chennai for the assessment year 2015-16 u/s. 143(3) of the Income Tax Act, 1961 (hereinafter the 'Act'), vide order dated 27.12.201....

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....0,26,814/-. The AO also noted that interest free loans were available with the assessee at Rs. 7,59,33,556/-. According to AO, interest bearing funds of Rs. 60,93,264/- were diverted by the assessee for non-business purposes or given as interest free loans to various parties. Therefore, the AO recomputed the allowable interest out of the total interest expenses claimed at Rs. 38,11,423/- and there....

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....is sufficient to meet the interest free loans advanced to sister concerns and these are not out of interest bearing loan funds on which expenditure is being claimed. When these facts were confronted to ld. Senior DR, he could not controvert the factual situation. We noted that the assessee is able to explain that interest free loans advanced to sister concerns are not diverted out of interest bear....