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2016 (5) TMI 918 - ITAT CHANDIGARHInterest allowance under section 36(1)(iii) - whether the amount lent to SML by the assessee was on account of some business expediency? - Held that:- No doubt remains in our mind that the amount was given to SML by the assessee, interest free, out of business expediency only. The company was going through a bad phase of poor financial health and the assessee had provided it assistance through these funds. Nowhere at any stage from the initiation of assessment proceedings, no allegation has been levied by any of the authorities below that these funds were given out of some personal reason or these funds have been used by SML for any purpose other than business purpose. The purpose for giving funds should not necessarily be immediate or direct benefit to the assessee. In views of this, we do not find any need for the Assessing Officer to do such an exercise. In view of the above, we hold that the amount advanced by the assessee to SML was out of business expediency. - Decided against revenue
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