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2018 (1) TMI 881 - ITAT MUMBAIDisallowance of interest expenditure - sufficient funds of its own for making the investments - Held that:- Notably, major part of the interest free loans are continuing from the preceding assessment years and only an amount of ₹ 10,00,000/– has been advanced to one person in the impugned assessment year. It is also established on record that the assessee was having huge interest free fund available with it not only take care of the interest free loans but also the amount spent in construction of factory premises. CIT(A) has recorded a categorical finding of fact that the borrowed funds were exclusively utilized for export of diamonds. Therefore, when the assessee was having sufficient interest free funds available with it to take care of the interest free loans and construction of factory premises, no disallowance out of interest expenditure can be made in view of the ratio laid down in case of Reliance Utilities And Power Ltd [2009 (1) TMI 4 - BOMBAY HIGH COURT]- Decided in favour of assessee
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