[aaykarbhavan] HC disallows interest on borrowings as assessee artificially borrowed its owned funds through a circuitous route

 

HC disallows interest on borrowings as assessee artificially borrowed its owned funds through a circuitous route

June 5, 2014[2014] 45 taxmann.com 257 (Karnataka)

IT: Deduction on account of lease rental was not allowable when lessor had not purchased any machinery

IT: Where assessee furnished some particulars, but details of parties as well as amount of alleged creditors under various heads were not furnished, 10 per cent of total advances be treated as unexplained cash credit

IT: Where assessee had invested its borrowed fund in a company but said company advanced said sum to another company which again invested said sum in assessee company, interest on borrowed capital need disallowance as borrowed fund was utilized for non-business purposes

Regards

Prarthana Jalan

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Posted by: Prarthana Jalan <prarthanajalan@ymail.com>

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