Deduction of interest paid on borrowed sums from Bank under the ...

Interest Deduction Allowed: Loans Diverted to Directors, Sister Concern; Company Had Sufficient Reserves, Surplus of 15 Crores.

November 27, 2015

Case Laws Income Tax SC

Deduction of interest paid on borrowed sums from Bank under the provisions of Section 36(1)(iii) disallowed - diversion of loan - loan given to Directors and Sister concern - the company had reserve/surplus to the tune of almost 15 crores - claim of deduction of interest allowed - SC

View Source

← Previous Next →

Deduction of interest paid on borrowed sums from Bank under the ...

Interest Deduction Allowed: Loans Diverted to Directors, Sister Concern; Company Had Sufficient Reserves, Surplus of 15 Crores.

November 27, 2015

Case Laws Income Tax SC

You may also like:

Deemed dividend u/s 2(22)(e) is not taxable in the hands of the assessee company if it is not a shareholder in the companies that extended loans. It is chargeable to tax...

Disallowance of interest paid to the bank - the appellant/assesse had advanced an interest free loan to its sister concern - there would be a direct benefit on account...

Allowability of interest relatable to the borrowed funds given by the company to its directors and its sister concerns for acquiring agricutural land - interest allowed - AT

Interest expenses u/s 36(1)(iii) - Addition of interest component considering that there is no commercial expediency in lending to sister concerns - AR explained the...

Interest on borrowed funds disallowance - interest free loan given to sister concerns - The sister concern getting into litigation or involving itself in a arbitration...

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...

Interest free advances and loans given to directors & sister concerns for non business purposes - Assessee had interest free funds of its own basis which addition u/s...

Loans to directors, etc - allows a company to give loan or guarantee or provide security to any person in whom any of the director is interested subject to passing of...

Disallowance of interest expenditure - The interest income earned by the assessee is from loans and advances given to sister concern which is shown by the assessee to...

Initiation of CIRP - transaction of Financial Debt or not - Loan taken by the Corporate debtor from the sister concern was assigned by the said sister concern to the...

Assessment of notional interest on loans - loan has been granted by the assessee to its sister concern - As per the provisions of Sec. 36(1)(iii) AO could have...

Disallowance on account of non- utilisation of loan - @ 14% of loan amount - there is nothing on the record that the assessee has diverted interest bearing borrowed...

Penal Charges paid to Sister Concern towards cost of storage - deduction disallowed - AT

TP adjustment of interest - CIT(A) confirmed upward adjustment towards interest by adopting rupee loan rate instead of LIBOR linked rate in respect of foreign currency...

Disallowance of interest on borrowings - assessee has not been able to prove that there is commercial expediency in diverting interest free funds to the sisterconcerns...

Quick Updates: