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2012 (10) TMI 1057 - ITAT HYDERABADDisallowance of interest u/s 36(l)(iii) of the Act - Held that:- the money advanced by the assessee to M/s. Agarwal Steel was towards purchase of steel - made trade advances, which are adjusted against the purchases made during the year - it is evident that the money advanced by the assessee to M/s. Agarwal Steel is not an interest free loan, but a trade advance - Decided in favor of assessee Disallowance u/s 40a(ia) - whether TDS is applicable - Held that:- The amount has been paid by the assessee during the relevant previous year - no disallowance could be made under S.40a(ia) of the Act, in view of the Special Bench decision in the case of Merilyn Shipping Transports (supra)- Decided in favor of assessee
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