Interest on interest free Loan To daughter out of Interest Bearing fund for non business propose not allowable

Shyam Bihari Gandhi Vs ITO (ITAT Delhi)

As regards addition of Rs. 20,38,472/- on account of payment of interest to bank which the assessee has mentioned in the profit and loss account. The revenue authorities have noticed that a loan (liability) of Rs. 1,11,73,554/- against which the assessee has claimed interest of Rs. 20,38,472/- and the Assessee has further given interest free loan to his daughter Ms. Mehak Gandhi to the tune of Rs. 1,57,26,728 meaning thereby that assessee has claimed interest expenses of borrowed capitals and by giving interest fr

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