Thursday 20 August 2015

Interest bearing loan taken from debtor resulted in diversion of income; ITAT disallows interest

IT: Where assessee-company received loan of certain sum from its holding company, 'F' and claimed interest on said loan, since 'F' was a debtor of assessee-company of more than double amount of loan, allowance of deduction was amount to diversion of income of assessee-company; interest paid was to be disallowed

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