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2012 (11) TMI 6 - AT - Income TaxInterest on borrowed capital – alleged that the borrowed capital on which interest was paid by the assessee was diverted by the assessee for providing interest free advances to its sister concerns – Held that:- Onus which was on the department for making the disallowance by bringing on record some material to show nexus between interest free advance and interest bearing borrowed capital was not at all discharged by the Revenue - borrowed funds were utilized for the specific projects for which they were borrowed - it is not the case of the Revenue that interest bearing fund were diverted by the assessee for non-business purpose - in favor of assessee
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