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2012 (12) TMI 246 - AT - Income TaxAddition on account of interest expenditure - assessee has both borrowed and interest free funds – Held that:- Assessee-company had sufficient interest free fund could be used towards loan and advances to sister concern - Revenue has not demonstrated as to how the interest bearing funds have been used towards loan/advances to the sister concern - entire interest free funds including the assessee’s own capital and accumulated profits and other interest free credits and loans and if the total interest free advances including the debit balance of partners did not exceed the total free funds available with the assessee, interest was not disallowable merely on amount of utilization of the funds for non-business purpose - disallowance deleted
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