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2015 (9) TMI 1341 - AT - Income TaxDisallowance of interest payment - AO making a reverse working @ 12% interest with reference to the total amount of interest - Held that:- As far as the relations of M/s Chirag International Jaipur and Dr. Neelu Vashishta are concerned, the assessee’s explanation is not convincing, therefore, the same cannot be considered. However, there is some force in the argument of the ld counsel that the assessee company had sufficient interest free funds available to its own. We find merit in the arguments of the ld counsel that if sufficient interest free funds are available with the assessee, then the issue of interest free advances shall be considered in the light of these facts. In view thereof, we are inclined to set aside the issue back to the file of the Assessing Officer to decide the matter afresh in accordance with law keeping in view the above observation in mind after giving adequate opportunity of being heard to the assessee. - Decided in favour of assessee for statistical purposes
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