Interest free loan

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.

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Judgement posted by

CA.Saibaburao Nanduri

Chartered Accountant

I am a commerce graduarte of Andhra University. Studied at HINDU COLLEGE, Guntur. Became FCA and started Practice under the name and style of M/s SAIBABU RAO CO I became Chairman of CA Institute, Guntur Branch, during the year 2008-09 My post qualifications are: Information Systems Audit DISA (ICAI) ... Read more

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