Notional Interest on Interest-Free Advances Rejected Under Real Income Theory

ACIT Vs SIP Infotech Limited (ITAT Mumbai) Notional Interest, “Paper Company” Theory & Protective Additions All Rejected: ITAT Mumbai Upholds CIT(A) & Dismisses Revenue Appeal Mumbai ITAT dismissed the Revenue’s appeal and affirmed the order of the CIT(A), granting complete relief to the Assessee-company. The case arose from reassessment proceedings u/s 147 r.w.s. 143(3), wherein the AO (i) disallowed ₹3.02 lakh of routine statutory & compliance expenses u/s 37(1) by branding the Assessee as a “paper company”, (ii) added ₹29.93 lakh as notional interest @18% on intere...