Provision for interest liability accrued but not provided in books is deductible

DCIT Vs Core Healthcare Ltd. (ITAT Ahmedabad) During the course of scrutiny assessment proceedings, the Assessing Officer noticed that the assessee has advanced loans of Rs 52,32,92,352 to a subsidiary company by the name of Span Medicals Ltd. When he probed the matter further, it was explained by the assessee that Span Medicals was a virtually defunct company and there was no commercial sense in providing for interest on this outstanding amount. It was also explained that the loan was originally given for sound commercial reasons, and that, in any event, interest free funds available to the a...