ITAT deletes addition of interest based on principle of presumption regarding interest-free funds

Eknath Ramkrisnanrao Salve Vs ITO (ITAT Pune) The case of Eknath Ramkrisnanrao Salve Vs. Income Tax Officer (ITAT Pune) revolves around three primary issues: the taxability of subsidy received, disallowance of interest on interest-free advances, and disallowance of agricultural income on an estimated basis. Let’s delve into each of these issues. Taxability of Subsidy Received: Mr. Salve received a subsidy of Rs. 13,19,670 from the Agricultural Department, Government of Maharashtra, for installing drip irrigation systems. The Assessing Officer treated this subsidy as taxable revenue recei...