Notional interest income cannot be estimated for disallowing interest expenditure 

Panchiram Nahata Vs ITO (ITAT Kolkata) The case of Panchiram Nahata Vs the Income Tax Officer (ITO) recently came before the Income Tax Appellate Tribunal (ITAT) in Kolkata. The crux of the matter lay in the assessee’s argument that no addition could be made based on notional interest due to the failure to receive interest for loan advances by the assessee Finance Company. In the case, the assessee firm, a finance company involved in trading shares and investing in mutual funds, argued against the addition of Rs. 10,38,950, an amount calculated as notional interest. The ITAT, on evaluati...