Case Law Analysis
|Income Tax Appellate Tribunal
Section 36(1)(iii) IT Act | Interest Disallowance Invalid If Interest-Free Funds Exceed Related Party Advances : ITAT Bangalore
ITAT Bangalore rules that disallowance of interest under Section 36(1)(iii) of the Income Tax Act is unsustainable if the assessee's interest-free funds exceed advances to sister concerns. The ruling reinforces that balance sheet evidence alone can disprove tax avoidance presumptions, impacting corporate tax assessments.