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2015 (10) TMI 462 - AT - Income TaxDisallowance of interest allegedly chargeable on interest free advances given to family members - Held that:- Commercial expediency has been explained to be the business interest of the assessee advancing interest free loans as opposed to the interest of the person receiving the loan. Hence, merely because the assessee has got sufficient interest-free funds in its books will not prevent disallowance of the interest expenditure if the assessee has advanced money free of interest without any commercial expediency attached to such advance. Considering the fact that there is no evidence or even a claim that any commercial expediency was involved in giving the interest free advances to Mrs. Sunita Chaudhary and Mr. Samir Choudhary,the disallowance of interest expenditure was accordingly rightly upheld. - Decided against assessee.
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