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 a

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