ITAT deletes Addition on account of notional interest on interest free advance

Shri John Jacob Vs JCIT (ITAT Indore) Assessee had produced books of account and audited statements, which proved that the assessee had sufficient surplus in his capital account to give interest free loan. Further that, the AO as well as CIT(A) had not brought anything on record to show that money so advanced was out of the borrowed funds. Hence, the direction was given to the AO to delete the disallowance of interest. FULL TEXT OF THE ITAT JUDGMENT Appeal by the assessee is directed against the order of CIT(A) – 31 ,New Delhi, Camp at Bhopal dated 29.08.2016, pertaining to assessment y...