Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (5) TMI 1630 - ITAT DELHITax liability of notional interest on interest free loan advanced to subsidiary companies - disallowances of interest paid to group Companies - disallowances of foreign education expenses - Held that:- if there are funds available both interest free and over draft and or loan taken, then a presumption would arise that investment would be out of the interest free funds generated or available with the company, if the interest free funds were sufficient to meet the investments - interest free funds available with assessee is ₹ 151 crores whereas the amount identified as interest free advances given by the assessee to sister concern is only ₹ 30.50 crores - Therefore, the disallowance of interest cannot be made on that ground only - thus disallowance of interest u/s 36(1)(iii) is not sustained - Decided in favor of assessee. Expenses incurred in respect of foreign education of the Director - Held that:- the main purpose as per the company is that education of director would be useful in expanding the export business of the company in long run - this expenditure is in the nature of training expenditure of the Director herself - thus full tuition fee is allowed - Decided in favor of assessee. Disallowance of interest on term loan and car loan u/s 14A - Held that:- interest is related for the purposes of investment in exempt income yielding investment - thus allowed - Decided in favor of assessee.
|