Disallowance of interest on loan given to subsidiary unjustified as investment was purely for commercial expediency

Aban Offshore Limited Vs DCIT (ITAT Chennai)

ITAT Chennai held that disallowance of interest u/s 36(1)(iii) of the Income Tax Act on loans and advances given to subsidiary company unjustified as investment in subsidiary is purely for commercial expediency.

Facts- The assessee is a Public Ltd Company, engaged in the business of offshore drilling and production services to companies engaged in exploration, development of oil and gas, both in domestic and international market

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