The tribunal also confirmed the deletion of notional interest on advances given for a cancelled transaction. Meanwhile, the ad hoc commission disallowance was partially upheld at 1%, reducing the AO’s estimate of 2%. Overall, the decision provided substantial relief to the assessee while clarifying key principles on VAT credit and notional interest

The Tribunal found the reduction commercially justified and non-prejudicial to shareholders or creditors. The ruling underscores that surplus capital may be returned when operational focus changes and statutory compliance is ensured.

The Tribunal found the reduction commercially justified and non-prejudicial to shareholders or creditors. The ruling underscores that surplus capital may be returned when operational focus changes and statutory compliance is ensured.