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2021 (6) TMI 813 - AT - Income TaxDisallowance u/s 36(I)(iii) - assessee company has advanced huge amounts to related concerns and to many other shareholders and that the assessee did not have any trading relations with the above two companies and also with the shareholders - disallow the proportionate interest paid by the assessee on the ground that the interest free advances were not for the purposes of assessee's business - HELD THAT:- We find that the assessee's contention of its own interest free funds being much more than the advances made as interest free loans needs verification - we deem it fit and proper to set aside the issue to the file of the Assessing Officer for denovo consideration in accordance with law. Needless to mention that the assessee shall be given a fair opportunity of hearing we find that the assessee's contention of its own interest free funds being much more than the advances made as interest free loans needs verification. In view of the same, we deem it fit and proper to set aside the issue to the file of the Assessing Officer for denovo consideration in accordance with law. Needless to mention that the assessee shall be given a fair opportunity of hearing.- Decided in favour of assessee for statistical purposes.
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