Making of Advances without Interest is not Contrary to Law

Brief Facts of the Case In the present case the Hon’ble High Court have deleted the addition on account of a notional income when advances were made without charging of any interest. Facts of the case These are the writ petitions which were preferred against the orders passed by the Commissioner of Income Tax under Section 264. In the assessment order, the addition of Rs.19,32,000/- on account of notional interest earned on advances given to Smart Tourist Private Limited was made. The petitioner is aggrieved by the fact that the said addition did not have any factual basis and it is for this...