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No disallowance of Interest on borrowed capital for Interest free advances if Sufficient own funds available
Case Law Details
- Case Name
- Shri Dharam Pal Aggarwal Vs ACIT (ITAT Chandigarh)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2012-13
- Courts
- All ITAT, ITAT Chandigarh
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Shri Dharam Pal Aggarwal Vs ACIT (ITAT Chandigarh)
In the present case it is noticed that the Assessing Officer himself admitted that on the loans and advances given by the assessee out of the borrowed funds by using the OD facility the interest was earned, he therefore allowed the interest expenditure to the extent of Rs. 7,17,875/-.
As regards to the other interest free advances, the bank statement of the assessee placed at page no. 16 of the assessee’s compilation reveals that the capital of the assessee as on 31.3.2012 was at Rs. 3,48,04,747/- and the Assessing Officer p...
