Friday, October 8, 2021

No disallowance u/s 36 if interest-free loans granted to subsidiary purely out of commercial expediency: HC

INCOME TAX : Where assessee holding company advanced interest-free loans to its subsidiary purely out of commercial expediency and there was no findings of fact that such loans advanced by assessee were utilized for personal benefits of directors of subsidiary and, further, assessee had sufficient interest-free funds to cover such loans given to its subsidiary, no interest expenditure was to be disallowed under section 36(1)(iii)

from www.taxmann.com Latest Case Laws https://ift.tt/3Dmx4cF

No comments:

Post a Comment

AO can’t disallow cost of improvement merely relying on enquiries made with assessee’s neighbour: ITAT

INCOME TAX : Where assessee had purchased a flat and incurred expenditure of Rs. 23 lakhs for purpose of renovating house and Assessing Offi...