Borrowed money invested in equity & Disallowance of interest expenses under section 36(1)(iii)
Short Overview Where the assessee diverted borrowed funds towards investment in a company but did not collect any interest on money so invested then the AO was justified in ...
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Posts tagged "Section 36(1)(iii)"
If the own funds are sufficient to cover interest free advances, proportionate disallowance of interest is not warranted
If the own funds are sufficient to cover interest free advances, proportionate disallowance of interest is not warranted
ITAT, Rajkot in the case of Woodman Trading Co. P. Ltd. vs Assessee [I.T.A. No. 552/Rjt/2008] has made following observation:
“On the basis of above ...
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