Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (2) TMI 73 - HC - Income TaxInterest paid for business purpose u/s 36(i)(iii) - Held that:- Only the assessee company and not the other two guarantors has advanced the interest-free loan to the sister-concern - No commercial expediency was involved in the advancing of interest-free loan to the sister concern - It was simply advanced to reduce the profitability of the concern as only the assessee was the only profit-making concern - Relying upon the decision in CIT v. Abhishek Industries Ltd. [2006 (8) TMI 123 - PUNJAB AND HARYANA High Court] - Interest has to be disallowed under section 36(1)(iii) in case advances have no direct nexus of the funds between borrowings of the funds and diversion thereof for non-business - Decided against assessee.
|