ITAT Restores Case to CIT(A) for Verification of Interest-Free Funds in Relief Granted to Assessee

DCIT Vs Oswal Extrusion Ltd (ITAT Ahmedabad) Income Tax Appellate Tribunal (ITAT) Ahmedabad heard an appeal filed by the Income Tax Department against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] for the Assessment Year 2016-17, in the case of DCIT Vs Oswal Extrusion Ltd. The core issue was the disallowance of interest under Section 36(1)(iii) of the Income Tax Act, related to interest-free advances made by Oswal Extrusion Ltd. to its sister concerns, HCP Enterprise Ltd. and Prasthan Infrastructure Ltd. The Assessing Officer (AO) had disallowed a portion of the interest expen...