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Income Tax - Highlights / Catch Notes

Home Highlights February 2013 Year 2013 This

Interest free advance without commercial expediency - Auditors ...

Income Tax

February 21, 2013

Interest free advance without commercial expediency - Auditors have considered the aforesaid loans as prejudicial to the interest of the assessee-company as no interest is being charged on them - Interest not to be allowed - AT

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  1. Advance made for commercial expediency - No disallowance of interest - AT

  2. Disallowance of Interest Expenses related to Interest free Advance/loan given to its subsidiary company - The loan advanced to subsidiary company is financed from...

  3. Interest free loan was advanced to the sister concerned - in the absence of any reference to any business transaction between the assessee and the sister concerns, the...

  4. Disallowance of interest made or borrowed funds - Even before us also, general submissions have been made that the amounts have been utilized for commercial expediency...

  5. Disallowance of interest 36(1)(iii) - advances to subsidiaries and step down subsidiaries - once the assessee has demonstrated the commercial expediency and corporate...

  6. Disallowance of interest u/s 36(1)(iii) - Interest free loans granted - The Co-ordinate Bench of the Tribunal had previously ruled in favor of the assessee on a similar...

  7. Interest free advances - Disallowance of part interest paid on unsecured loans - Merely because non-interest-bearing advances were given to third parties, would not...

  8. Disallowance of interest u/s 36(1)(iii) - The AO had disallowed the interest claimed by the assessee on advances made to its Director, citing a lack of nexus between the...

  9. Disallowance of interest on advances to subsidiaries u/s.40A - AO was of the opinion that the assessee has diverted interest bearing funds to subsidiaries for...

  10. Disallowance of amount of interest on the amount advanced as interest-free advance & loans - Assessee on one hand is advancing interest free loans and advances to his...

  11. Addition of interest attributable on the diversion of loan fund - Once own fund of the assessee exceeds the amount of interest free loans and advances, then a...

  12. Disallowance of proportionate interest u/s 36 (1) (iii) - when assessee had sufficient funds, why should it depend on borrowed funds. In any case, if at a given point of...

  13. Disallowance of interest on the advance - Simply because the assessee has secured loan from Standard Chartered Bank that does not mean that same interest bearing fund...

  14. Disallowance of interest expenses incurred for non-business purposes - The ITAT found that the interest expenditure claimed by the assessee was allowable due to the...

  15. Interest expense - The borrowed amount in question was not utilized by the assessee in its own business, but had been advanced as interest-free loan to its...

 

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