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2016 (3) TMI 816 - ITAT MUMBAIDisallowance of interest u/s.36(1)(iii) - advance made to the sister concerns - Held that:- There can be no presumption that the shareholders’ fund of a company is utilized for the purchase of fixed assets. If the assessee has interest free funds as well as interest bearing funds at its disposal, then the presumption would be that investments were made from interest fee funds at the disposal of the assessee. The facts of the instant case abundantly show that the shareholders fund is much more than the amount advanced by the assessee without any interest to its sister concerns. Respectfully following the precedent, we hold that the ld. CIT(A) was not justified in sustaining addition under the present circumstances - Decided in favour of assessee
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