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Income Tax - Highlights / Catch Notes

Home Highlights February 2013 Year 2013 This

Interest free advance without commercial expediency - Auditors ...

Case Laws     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. Addition of interest on interest free loans advanced by assessee Company to sister concerns/related parties disallowed. Onus on assessee to prove commercial expediency...

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

  3. The assessee failed to demonstrate that the financial assistance availed on interest was utilized for business purposes without diversion. Where an assessee has...

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

  5. 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...

  6. 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...

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

  8. 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...

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

  10. 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...

  11. 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...

  12. 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...

  13. 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...

  14. 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...

  15. 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...

 

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