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2014 (12) TMI 1191 - RAJASTHAN HIGH COURT
Disallowance of interest as interest free advances were given to its sister concerns - ITAT deleted the addition - Held that:- , the assessee admittedly had its own funds, as referred to earlier, and admittedly such funds/reserves being substantially higher than, even otherwise, the advances to the debtors, no notional interest or hypothetical interest could have been disallowed on such facts. The revenue has failed to prove nexus. In our view, the ITAT has correctly appreciated the facts and law in deleting the notional interest, disallowed by the AO and accordingly the appeal is decided against the revenue and in favour of the assessee.