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2018 (2) TMI 1642 - AT - Income TaxDisallowance u/s 36(1)(iii) - Addition being notional interest on alleged interest free advances given by the assessee - whether the advances were given out of own funds of the assessee - Held that:- Since the interest free own funds of the assessee far exceed the interest free advances, the disallowance u/s 36(1)(iii) was not warranted in view of various judicial pronouncements relied on by Learned A. R. Hon'ble Allahabad High Court in the case of Smt. Chanchal Katyal vs. CIT [2006 (10) TMI 92 - ALLAHABAD HIGH COURT]. As regards the other disallowances, it is noticed that Assessing Officer had made ad hoc disallowance without pointing out any specific defect in the vouchers or pointing out any specific instance. Assessing Officer has merely acted on presumption.
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