Dismissing the appeal of the Revenue the Court held that interest free advance to subsidiary for the purpose of business . Interest is allowable as deduction . (AY. 2006 -07) ( ITA No. 927 of 2018 dt . 31 -1 -2024 )
PCIT v. ESSEL Infra Projects Ltd ( Former PAN India Paryatn Ltd ( 2024) BCAJ – March – P. 47 ( Bom)( HC)
S. 36(1)(iii) :Interest on borrowed capital – Interest free advance to subsidiary – Allowable as deduction on commercial expediency . [ S. 37(1), 260A ]
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