The Tribunal observed that “merely because the recipients are relatives” does not invalidate the expenditure if the services are real, and the payments are made wholly and exclusively for business purposes, which the assessee had shown in detail.

The Tribunal held that once a corporate entity voluntarily executes a guarantee, it becomes independently liable for the debt, which qualifies as “financial debt” under Section 5(8)(i) of the Insolvency and Bankruptcy Code (IBC).

The Tribunal held that once a corporate entity voluntarily executes a guarantee, it becomes independently liable for the debt, which qualifies as “financial debt” under Section 5(8)(i) of the Insolvency and Bankruptcy Code (IBC).