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Business Advances made without Interest to Indian and Foreign Subsidiaries can’t be Disallowed

In M/s. Essel Propack Ltd. vs DCIT, the Income Tax Appellate Tribunal said Business Advances made without interest to Indian and subsidiaries can’t be disallowed under the provisions of the Income Tax Act, 1961. 

The Revenue, in the instant case, was aggrieved by the order of the first appellate authority who deleted the disallowance of interest under Section 36 (1) (iii) of the Income Tax Act on the plea that assessee was having sufficient own funds for investment in subsidiary company.

Article referred: http://www.taxscan.in/business-advances-made-without-interest-indian-foreign-subsidiaries-disallowed-itat/16289/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+Taxscan+%28Top+Stories+%E2%80%93+Taxscan+%7C+Simplifying+Tax+Laws%29

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