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2017 (4) TMI 1330 - HC - Income TaxDisallowance of interest expenditure - whether investments in sister concerns served any business purpose? - Held that:- As categorically recorded by the Tribunal that in the case of the assessee, non-interest bearing funds are more than non interest bearing investments. Further, the assessee had declared more interest income on fixed deposits than the interest paid by him on interest bearing funds. The total non interest bearing funds were to the tune of ₹ 84,82,25,180/- against which the assessee had invested as non interest bearing investments to the tune of ₹ 72,28,15,197/-. It was concluded that the assessee had not deployed interest bearing funds into non interest bearing investments. Assessee is a major share holder and therefore the advance/investments made by assessee in these companies cannot be said to be without commercial expediency. There would be a direct benefit to the assessee if the interest free investments made in these companies results into more profits to these companies and indirectly to the assessee. - Decided against revenue
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