Interest expenses u/s 36(1)(iii) - Addition of interest ...

Income Tax

June 13, 2022

Interest expenses u/s 36(1)(iii) - Addition of interest component considering that there is no commercial expediency in lending to sister concerns - AR explained the accounting concept on the weighted average rate of interest considering the variability of interest rate range from @8.75% to 16% though this approach cannot be incorporated in the audited financial statements but the reasonableness and explanations to provide the loans to sister concerns cannot be over looked and the group transfers between one sister concern to another sister concern as per requirement of funds. - Additions deleted - AT

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Interest expenses u/s 36(1)(iii) - Addition of interest ...

Income Tax

June 13, 2022

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