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2019 (6) TMI 539 - AT - Income TaxDisallowance of interest - diversion of funds for a non-business purpose - interest-bearing fund @15.10% diverted at a lower rate of interest @ 12%- sufficiency of own funds - HELD THAT:- As owned fund of the assessee as on 31st March 2013 and 31st March 2014 stands at ₹9,20,43,295.00 and 15,09,83,383.00 which is more than the amount of advances of ₹7,66,40,811 given at a lower rate of interest. The details of the own fund and the amount of impugned advances are not in dispute. Therefore a presumption can be drawn that the assessee has advanced the money to the relatives of the partners out of its fund. See RELIANCE UTILITIES & POWER LTD. [2009 (1) TMI 4 - BOMBAY HIGH COURT], HDFC BANK LTD. [2014 (8) TMI 119 - BOMBAY HIGH COURT] and UTI BANK LTD. [2013 (8) TMI 238 - GUJARAT HIGH COURT] - Decided in favour of assessee.
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