Section 36(1)(iii) Interest Disallowance Deleted on Loan to Wholly Owned Subsidiary: ITAT Delhi

Advertisement Moonrock Hospitality (P) Ltd. Vs ACIT (ITAT Delhi) The assessee appealed against the order of the Commissioner of Income Tax (Appeals) for Assessment Year 2016-17, challenging the confirmation of disallowance under Section 36(1)(iii) of the Income Tax Act, 1961. The dispute related to the proportionate interest disallowed on the ground that the assessee had advanced interest-free funds to its wholly owned subsidiary. The assessee contended that the funds had been extended to the subsidiary to pursue its business activities in furtherance of commercial expediency. The assessee,...