Court Upholds Disallowance of Finance Charges Due to Unexplained Diversion of Interest-Bearing Funds to Related Parties.

Addition made towards disallowance of finance charges - As assessee has paid huge interest on borrowed funds. The assessee has not furnished satisfactory explanation for diverting interest bearing funds to related parties for non-business purpose. Therefore, we are of the considered view that the AO was right in disallowance of proportionate interest @ 12% - AT .....

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