Presumption of Interest-Free Usage When Interest-Free & Interest-Bearing Funds Are Mixed

CCIT(OSD)/PCIT Vs Bhupendra Champaklal Dalal (Bombay High Court) The recent judgment by the Bombay High Court in the case of CCIT(OSD)/PCIT Vs Bhupendra Champaklal Dalal sheds light on the presumption of interest-free usage when interest-free and interest-bearing funds are mixed, especially in the context of business dealings and tax assessments. Analysis: The case revolved around several issues including the disallowance of interest expenses for non-business purposes, addition made under Section 68 of the Income Tax Act regarding cash credits, and deletion of various additions totaling to a s...