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2015 (9) TMI 1346 - AT - Income TaxDiversion of interest bearing funds towards non-business purposes - assessee has advanced interest-free funds to related concerns - Held that:- None of the discussion in the orders of AO or CIT(A) makes a reference to any nexus between the interest bearing funds and the impugned interest free advance made to the sister concerns . Moreover, the assessee has pointed out that it has enough interest free funds to cover the impugned interest free advance made to the sister concerns, and therefore, under these circumstances the ratio of the judgment of the Hon’ble Bombay High Court in the case of Reliance Utilities & power Ltd. (2009 (1) TMI 4 - HIGH COURT BOMBAY ) clearly supports the plea of the assessee for deletion of the disallowance out of interest expenditure. The precedents in the assessee’s own case also support the stand of the assessee, therefore, we do not find any merit in sustaining the disallowance of ₹ 2,32,590/- The same is directed to be deleted. - Decided in favour of assessee.
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