Unsecured loans proved to be genuine hence disallowance of interest u/s. 36(1)(iii) deleted

Ardor Overseas Pvt. Ltd. Vs DCIT (ITAT Ahmedabad) ITAT Ahmedabad held that disallowance of interest u/s. 36(1)(iii) of the Income Tax Act not justified since the amount introduced by way of unsecured loans proved to be genuine. Accordingly, disallowance of interest deleted. Facts- M/s. Nikshal Properties Pvt. Ltd. (NPPL) had sold land to M/s. Ardor Overseas Pvt. Ltd.(AOPL).In the return of income filed by NPPL, capital gain on account of the said transaction was shown and the same entirely set off against loss incurred on commodity transaction. During assessment proceedings, NPPL, the assessee...