Interest-Free Advances Not Taxable When No Borrowed Funds Used: ITAT Mumbai

Advertisement Robust Transportation Pvt. Ltd. Vs ITO (ITAT Mumbai) The appeal before the Income Tax Appellate Tribunal, Mumbai Bench concerned the addition of notional interest made in the assessment of Assessment Year 2017–18. The assessee challenged the order of the National Faceless Appeal Centre, which had upheld an addition of ₹1,73,68,000 computed as notional interest at 8% on loans and advances aggregating to ₹21,71,00,000. The assessee-company was incorporated with objects relating to transportation across various modes but had not commenced its principal business activities d...