ITAT upheld deletion of notional interest on interest-free advances to a subsidiary

DCIT Vs Shoppers Stop Limited (ITAT Mumbai) The Revenue appealed against the order of the Commissioner of Income-tax (Appeals) [CIT(A)] for Assessment Year 2023-24, challenging the deletion of an addition made by the Assessing Officer (AO) on account of notional interest on interest-free loans and advances provided by the assessee to its subsidiary, Gateway Multichannel Retail (India) Limited. The AO had added notional interest at 9% under Section 5 of the Income-tax Act, holding that interest income had accrued because the assessee had extended interest-free loans amounting to Rs. 2,329.10 l...