Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (7) TMI 768 - AT - Income TaxAllowability of interest free security and loan - there was no reason to disbelieve that the assessee had given interest free security whom a sum as job charges was received by the assessee - the CIT(A) was not justified in confirming the disallowance made by the AO on account of notional interest on the security deposit given to the party from whom maximum job work was obtained by the assessee - thus notional interest worked out by the AO on the amount outstanding was not justified – the assessee was having sufficient amount of interest free loan - no disallowance was called for out of the interest and accordingly addition made by the AO on account of notional interest was also not justified and CIT(A) without appreciating the facts had confirmed the action of the AO - CIT(A) was not justified in confirming the disallowance made by the AO – appeal decided in the favour of assessee.
|