Relief to assessee on interest expenses addition and partial relief for household expenses disallowance

Manish Chiranjilal Jain Vs ITO (ITAT Surat) Conclusion: As regarding disallowance of interest-free loans on unsecured loans, it was concluded that the same were part of routine business transactions and were of short-term nature therefore, no addition for interest charged on the loans. With regard to addition on account of low household expenses Tribunal took a more reasonable approach, considering the family size and living conditions and allowed a deduction of Rs. 1.20 lakh for the household expenses, including the wife’s withdrawals, and upheld a part of the addition of Rs. 2,81,600. Held...