Addition of Notional Interest on Advances to Related Parties Unsustainable due to availability of sufficient interest free funds

DCIT Vs Parinee Housing Private Limited (ITAT Mumbai)

ITAT Mumbai held that addition of notional interest on advances to related parties (i.e. the directors and sister concern/related parties) unsustainable as the assessee has been able to substantiate availability of sufficient interest free funds.

Facts- The solitary issue raised by the Revenue in appeal is against the findings of CIT(A) in deleting the addition of interest on the loans advanced to the directors and sist

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