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2011 (1) TMI 903 - AT - Income TaxCommercial Expidency:- Non-charging of interest on advances by the sister concern, particularly in the situation where both the concerns having benefits of such mutual accommodation, could indeed be justified on the ground of commercial expediency in a particular fact situation. - claim of deduction of interest allowed. Ad hoc disallowance in the absence of fully supporting vouchers and also considering the personal element - transport, octroi and freight charges, telephone expenses and miscellaneous expenses - held that:- no disallowance is called for on account of personal use of these facilities as it is a case of company as held in the case of Sayaji Iron & Engg. Co. v. CIT (2001 -TMI - 13175 - GUJARAT High Court) wherein, it was held that no disallowance on account of personal use of the vehicles/telephone by the directors/officials could be made in the hands of a company. - Decided in favor of assessee.
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