Interest on interest free loan to director for non-business purpose disallowable

Kamal Translifters Vs ACIT (ITAT Ahmedabad) Though the assessee’s claim that payment made to the Director, was for business expediency, but the assessee could not prove before us the nexus between the assessee-company with its subsidiary company in the nature of trade and business. Furthermore, Shri Kamal Deshraj Dogra being director of both the companies, payments made directly to the common director of the company is not established with proper material on hand for the so called business exigency. Thus, the assessee’s arguments that there was a running account with the sister concern viz...