Interest expense for amount advanced to subsidiary out of commercial expediency allowable

Advertisement Intervo Technologies Pvt. Ltd. Vs ACIT (ITAT Delhi) ITAT Delhi held that amount advanced to subsidiary companies out of commercial expediency, accordingly, disallowance of interest claimed under section 36(1)(iii) of the Income Tax Act unsustainable. Facts- Assessee is engaged in the business of call center operation, maintenance and repairs service, non-technology software services. During the assessment proceedings, AO required the assessee to substantiate the claim of interest expenses. AO had observed that assessee has advanced loans to its subsidiary companies. AO further...