2000 (4) TMI 2 - SC - Income Tax

Loan granted to an employee who is a director or who has a substantial interest in the company without charging any interest - ITO found that the assessee, which was a company, was borrowing large sums by paying interest at 15 per cent per annum. This interest was claimed by the assessee as deductible expenditure - Tribunal is right in law in holding that non-charging of interest on the debit balance in the running account of the directors would not constitute a perquisite