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)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)www.taxmann.com Latest Case LawsRead More

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