Held that during the year under consideration, assessee had not advanced any interest-free loan to its subsidiary companies and all interest-free loans were granted in preceding years, no disallowance could be made under section 36(1)(iii) on account of interest paid on working capital loan. (AY. 2017-18)
Laqshya Media Ltd. v. ACIT (2025) 213 ITD 588 (Mum.)(Trib.)
S. 36(1)(iii): Interest on borrowed capital-Working capital loan-Interest-free loans were advanced in earlier years-Interest paid on working capital loan cannot be disallowed.
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