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2012 (9) TMI 506 - AT - Income TaxDisallowance of interest expense – AO is of view assessee paid higher interest on borrowings and gave those funds at lower rate of interest - Difference between interest paid and interest received was treated as expenditure not incurred for the purpose of business and disallowed – Held that:- Assessee having both interest free funds and interest bearing funds were used for the purpose of business of the assessee and there was necessity to borrow funds. Therefore with regard to the interest free funds having been given owing to commercial expediency also requires examination. Case remand back to AO.
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