Section 36(1)(iii) Disallowance on Group Loans Remanded

Reddy Housing Pvt. Ltd Vs ITO (ITAT Bangalore) Interest-Free Loans to Group Under Scanner Again — Bangalore ITAT Remands 36(1)(iii) & Deemed Dividend Issues in Reddy Housing Case The Bangalore ITAT (B Bench) allowed the appeal of M/s Reddy Housing Pvt. Ltd. (AY 2016-17) for statistical purposes and remanded the matter to the AO for fresh adjudication, holding that crucial facts relating to commercial expediency and source of funds were not properly examined at the lower levels. The AO had disallowed ₹3.65 crore u/s 36(1)(iii) on the ground that the Assessee, despite having negligible r...