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Interest free loan

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Court :
HC

Brief :
Held by the Hon`ble Court that it had come on the records that due to bad financial position no interest has been charged in order to safe guard the principal and assessee acted as an prudent person. Therefore no notional interest, on interest free loan for business purpose, will includible in the income of assessee.

Citation :
C.I.T. Vs. Govind Agencies P. Ltd. 08/16/2007 [2007] 295 ITR 290 (All)

Interest free loan C.I.T. Vs. Govind Agencies P. Ltd. 08/16/2007 [2007] 295 ITR 290 (All) Case Fact: Whether, notional interest on interest free loan for business purpose, will includible in the income of assessee? Decision: Held by the Hon`ble Court that it had come on the records that due to bad financial position no interest has been charged in order to safe guard the principal and assessee acted as an prudent person. Therefore no notional interest, on interest free loan for business purpose, will includible in the income of assessee.
 

CA.Saibaburao Nanduri
on 29 May 2008
Published in Income Tax
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