Disallowance of interest u/s 36(1)(iii) - Advance given to ...

Interest Disallowance Overturned: Advance for Business Property Purchase Deemed Legitimate and Recovered.

May 15, 2024

Case Laws Income Tax AT

Disallowance of interest u/s 36(1)(iii) - Advance given to Individual for purchase of property - The CIT(A) found that the advance was for purchasing a property intended for business use, as the property had been on lease to the assessee since 2007 and continued to be used as the corporate office. The Tribunal upheld the CIT(A)'s decision, noting that the Department could not present new evidence to counter the CIT(A)'s findings. The disallowance was deemed incorrect as the advance was eventually recovered, demonstrating its business nature.

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Disallowance of interest u/s 36(1)(iii) - Advance given to ...

Interest Disallowance Overturned: Advance for Business Property Purchase Deemed Legitimate and Recovered.

May 15, 2024

Case Laws Income Tax AT

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