Interest-Free Loans for Business Purposes Not Subject to Interest Disallowance, Tribunal Rules on Commercial Expediency.

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....Disallowance of interest u/s 36(1)(iii) - Interest free loans granted - The Co-ordinate Bench of the Tribunal had previously ruled in favor of the assessee on a similar issue, highlighting that no disallowance can be made for amounts paid to parties in earlier years, which were standing as loans and advances. The Tribunal also emphasized that the concept of "commercial expediency" is crucial, and no disallowance can be made under Section 36(1)(iii) for amounts advanced for commercial reasons.....