ITA No.649/Mum/2024
Parties Involved
Facts Summary
The assessee, M/s. Akshar Developers, a partnership firm engaged in real estate development, filed an appeal against the order passed by the Commissioner of Income Tax (Appeals) for the assessment year 2017-18. The assessee challenged the disallowance of interest expenses amounting to Rs.2,70,71,100/-. The assessee had given loans and advances amounting to Rs.53,08,05,897/- and paid interest amounting to Rs.11,41,28,939/-. The Assessing Officer disallowed the interest expenses as the assessee could not establish the amount of interest-free loans given as interest-free advances. The Commissioner of Income Tax (Appeals) confirmed the disallowance. The assessee submitted that it had sufficient interest-free funds to cover the advances given. The Tribunal examined the submissions and found that the assessee had sufficient interest-free funds to cover the advances given.…
Decision in favour of
Assessee
Legal Issues
- 1. Disallowance of interest expenses
Judgment Outcome
Decided in favour of Assessee.
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