Tribunal held that interest paid for outstanding credit balance cannot be disallowed on the ground that no interest was charged from debtors. (AY. 2008 -09 to 2011-12)
Aditya Medisales Ltd. v. DCIT (2019) 176 ITD 783 (Ahd.)(Trib.)
S. 40A(2) : Expenses or payments not deductible–Excessive or unreasonable-Interest paid for outstanding credit balance-No interest was charged from debtors- Interest paid could not be disallowed.