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2014 (1) TMI 238 - AT - Income TaxDisallowance of interest on interest free loan - Held that:- The assessee has not placed any documents to establish the fact that the interest bearing funds from financial institutions were not taken during the year and was not utilised for interest free advances given to the sister concern - There is nothing on record to show that the entire term loan taken was utilised for the construction of the house property - The issue was restored for fresh adjudication - If the assessee is able to establish with supporting evidence the fact that the loan taken from the bank on which interest was being paid was utilised for the purpose of construction of the house property and has no nexus with the interest free advances made to sister concerns then no disallowance should be made from the interest payment.
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