Advance for construction of factory building is held to be for the purposes of business hence no disallowances can be made. As regards reimbursement of expenses the matter is remanded to the AO for verification.(AY.2014-15)
ACIT v. Transenergy Ltd. (2020) 77 ITR 74 (SN)(Chennai)(Trib.)
S. 36(1)(iii) : Interest on borrowed capital-Advances for construction of factory building-No disallowance can be made-Reimbursement of expenses–Matter remanded. [S. 40(a)(ia)]