Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (7) TMI 765 - AT - Income TaxDisallowance out of interest expenses - The assessee had voluntarily disallowed interest of Rs.2,52,278/- u/s. 14A - Held that:- Disallowance that the assessee could not make out a case that there was any commercial expediency to take the loan at higher rate @ 12% and giving loan @ 9% CIT(A) had not examined whether the advances given by the assessee were out of interest free fund or from the interest bearing borrowed capital - as the assessee has demonstrated that the advances were out of interest free funds available with him no addition was called for in respect of the advances given to Shri Boney N Dalal and Niranjan V Dalal. In respect of Mohit Overseas (P) Ltd. that the assessee had been giving as well as taking loan from the said party and interest was being paid and charged at the same rate, therefore we find force into the contention of the assessee that such transactions were for business purposes. In view of this, no addition was called for - in favour of assessee.
|