This is premium content. Please become a Premium member. If you are already a member, login here to access the full content.
When Own Funds Are Huge, Interest Disallowance Fails: ITAT Deletes ₹5.62 Cr Interest
Case Law Details
- Case Name
- ACIT Vs VIC Enterprises Pvt Ltd (ITAT Delhi)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2015-16
- Courts
- All ITAT, ITAT Delhi
Upgrade to Basic or Premium to download.
Already Upgraded? Log in.
ACIT Vs VIC Enterprises Pvt Ltd (ITAT Delhi)
VIC Enterprises Pvt. Ltd. is an NBFC & promoter of Dabur India Ltd., earning over 96% of its dividend income from Dabur. AO noticed that the company had made interest-free advances/investments of ₹108.45 Cr to group/associate entities while paying interest of ₹5.62 Cr on borrowings. AO presumed that borrowed funds were diverted interest-free & disallowed the entire interest u/s 36(1)(iii). AO also made disallowance of ₹2.08 Cr u/s 14A.
CIT(A) deleted both disallowances by following ITAT orders in Assessee’s own cases for AYs 2010...
Author Info
