Disallowance of interest of CC account, for capital advances for purchase of assets

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Last updated: 07 August 2021
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The Income Tax Appellate Tribunal (ITAT) has allowed an appeal by Monte Carlo Fashions Ltd. concerning the disallowance of interest on funds used for capital advances. The Assessing Officer (AO) had disallowed Rs. 16,79,012, but the assessee provided evidence of surplus funds, suggesting no borrowed funds were used beyond available own funds. The tribunal set aside the disallowance, allowing the appeal for statistical purposes.

Court :
INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH

Brief :
This is an appeal by the assessee against the order dt. 01/06/2019 of the Ld. CIT(A)-3, Ludhiana.

Citation :
ITA NO. 1158/Chd/2019

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Poojitha Raam Vinay

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I simplify complex income tax, TDS, banking, and investment updates into practical insights for taxpayers, salaried professionals, pensioners, and senior citizens. I regularly write on ITR filing, tax compliance, savings schemes, and the latest financial rule changes in India.

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