The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has deleted an interest disallowance of Rs. 2.88 crore made under Section 36(1)(iii) of the Income Tax Act, 1961, holding that no diversion of borrowed funds can be alleged merely because partners made drawings, when the assessee possessed ample interest-free funds. The bench of Sanjay…
HomeDirect TaxNo Interest Disallowance When Sufficient Interest-Free Funds Exist Despite Partners’ Drawings: ITAT
No Interest Disallowance When Sufficient Interest-Free Funds Exist Despite Partners’ Drawings: ITAT
Mariya Paliwalahttps://www.jurishour.in/
Mariya is the Senior Editor at Juris Hour. She has 7+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started her career as a freelance tax reporter in the leading online legal news companies.
Latest articles
Direct Tax
Entire Bogus Purchase Addition Unsustainable When Sales Are Accepted; ITAT Restricts Addition to 8% Profit Element
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that where...
Case Compilation
JURISHOUR | TAX LAW DAILY BULLETIN : 24 June, 2026
Here’s the Tax Law Daily Bulletin for June 24, 2026.GSTBOMBAY HIGH COURT ADMITS CHALLENGE...
Indirect Taxes
Customs Can’t Levy Rs. 1.36 Crore Cost Recovery Charges Without Proof of Full-Day Officer Deployment: CESTAT
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata Bench, has set aside...
Indirect Taxes
Glucometers Are Chemical Analysis Instruments Classifiable Under Tariff Heading 9027: CESTAT
The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has...
More like this
Direct Tax
Entire Bogus Purchase Addition Unsustainable When Sales Are Accepted; ITAT Restricts Addition to 8% Profit Element
The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) has ruled that where...
Case Compilation
JURISHOUR | TAX LAW DAILY BULLETIN : 24 June, 2026
Here’s the Tax Law Daily Bulletin for June 24, 2026.GSTBOMBAY HIGH COURT ADMITS CHALLENGE...
Indirect Taxes
Customs Can’t Levy Rs. 1.36 Crore Cost Recovery Charges Without Proof of Full-Day Officer Deployment: CESTAT
The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Kolkata Bench, has set aside...

