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2016 (1) TMI 854 - ITAT DELHIDisallowance of interest expenses - CIT(A) deleted the addition - whether the assessee was having adequate interest free funds at its disposal without considering the fact that had interest free funds would been available with the assessee then the assessee would not applied for debt restricting with the financial institutions - Held that:- Assessee has huge interest free fund available with it and therefore the disallowance u/s 36(1) (iii) on account of advances given to other parties from of interest cannot be disallowed. Therefore we confirm the order of CIT (A) in deleting the disallowance on account of amounts advanced to sister concerns without charging interest. - Decided in favour of assessee. Disallowance of club membership fees holding that these are of personal nature - Held that:- Club membership fees paid for employees is allowable u/s 37 of the Act. Before CIT (A) assessee has given detailed list of persons for whom the membership is taken. Therefore disallowance of club membership is deleted. Ground of the appeal is allowed.- Decided in favour of assessee.
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