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2021 (7) TMI 975 - AT - Income TaxDisallowance on interest expenditure - Suffiecny of own funds - HELD THAT:- It is now well settled proposition of law that the interest disallowance is not called for when the own funds available with the assessee is more than the amount of interest free advance given. In the instant case, we have already seen that the own funds available with the assessee is in excess of the value of the amount of investment and interest free loan. Hence, the tax authorities are not justified in disallowing the interest claim made by the assessee. Accordingly, we set aside the order passed by Ld. CIT(A) on this issue and direct the A.O. to delete the disallowance.
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