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Interest cannot be disallowed for interest free loan given to sister concerns for business purpose
Case Law Details
- Case Name
- Vassantram Mehta & Co.(P) Ltd. Vs Joint Comm. of Income Tax (Bombay High Court at Goa)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2001-02
- Courts
- All High Courts, Bombay High Court
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Brief- High Court of Bombay at Goa has held in the case of Vassantram Mehta & Co. (P) Ltd. vs. JCIT that Interest not to be disallowed if interest free advance granted to sister concern due to commercial expediency and is for business purpose of assessee.
Brief about case
The appellant-assessee filed its return of income declaring a total income of Rs.28.61 lakhs after claiming deduction of expenditure incurred on account of interest aggregating to Rs.27.03 lakhs on pre-shipment packing credit facility obtained and Rs.12.85 lakhs as loss on foreign exchange fluctuation. Th...
