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2021 (2) TMI 227 - AT - Income TaxFinancial charges disallowance - allowable business expenses or not? - HELD THAT:- Case file suggests that the instant issue of the assessee being treated as mere name lender for its group concern is no more res integra. This tribunal’s co-ordinate bench’s decision [2017 (7) TMI 33 - ITAT HYDERABAD] has dealt the financial charges are utilised for the purpose of business only. We are prima-facie satisfied that the financial charges cannot be disallowed. However, AO has not given any finding whether the funds are really diverted to sister concerns, out of the funds availed due to discounting of bills. There is no distinction on facts forthcoming in the case file. We thus follow the judicial consistency in these facts and circumstances and uphold the CIT(A)’s order deleting financial charges disallowance.Revenue’s appeal is dismissed.
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