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2019 (3) TMI 1812 - AT - Income TaxDisallowance u/s 36(1)(iii) - Interest free loans and advances extended by the assessee company to various parties - HELD THAT:- Assessee’s own fund have been utilized for the purpose of advances to various parties. The assessee company has huge surplus funds at its disposal. Sufficient interest free fund was available with the assessee out of which interest free loan and advances were provided to parties. Whether the decision as to how much is a reasonable expenditure ought to have been decided by the assessee company; the revenue cannot question that once the nexus between the expenditure and the purpose of business has been established as already decided by the number of judgments pronounces by different legal forum including the judgment passed in the case of CIT-vs-Dalmia Cement (P.) Ltd. [2001 (9) TMI 48 - DELHI HIGH COURT] - Assessee’s appeal is allowed.
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