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2017 (5) TMI 216 - AT - Income TaxDisallowance u/s.36(1)(iii) - assessee has given interest free advances to the persons referred u/s.40A(2)(b) - Held that:- Fom the facts of the present case and the decision of Hero Cycles (P.) Ltd. Versus CIT [2015 (11) TMI 1314 - SUPREME COURT OF INDIA] essentially there has to be a commercial expediency or there has to be interest free funds with the assessee and the decision of Abhishek Industries is not a good law in view of the decision of Hon’ble Apex Court referred to hereinabove. Since, the earlier year advances have been accepted in the preceding years and no interest on the same has been disallowed, therefore, no disallowance in the impugned year can be made in view of the decision of Hon’ble Karnataka High Court in the case of Sridev Enterprises [1991 (1) TMI 52 - KARNATAKA High Court] wherein held that a debt which had been treated by the Revenue as a good debt in a particular year cannot subsequent be held by it have become bad prior to that year. - Decided in favour of assessee
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