Section 36(1)(iii) Disallowance Unwarranted as No New Advance to Sister Concern: ITAT Bangalore

Deccan Charters Pvt Ltd Vs DCIT (ITAT Bangalore) ITAT Bangalore held that disallowance under section 36(1)(iii) of the Income Tax Act unwarranted as no new advance extended to sister concern. Accordingly, disallowance u/s. 36(1)(iii) deleted. Facts- The assessee is a private limited company and is engaged in the business of providing aviation services by operating and maintaining aircrafts at various locations and having base at Bengaluru. The return of the assessee was selected for scrutiny. AO noticed from the audited financial statements that the assessee has made advances to related concer...