Interest disallowed u/s 37

16 January 2016

whether interest on CC can be disallowed by the AO u/s 143(1)?

Reply
Follow
Share

3 Replies

Jaspal Singh (Practising CA) (321 Points)
Replied 16 January 2016

Generally,interest is business expenditure absolutely claimable.. No reason why it should be disallowed..

ashim (partner) (30 Points)
Replied 17 January 2016

Generally not disallowed...but if any amount of the business is lent out to other without interest a proportion of interest on cc can be disallowed.

Ashok J (CA Final) (880 Points)
Replied 18 January 2016

As per a case law if CC amt is utilised to pay income tax, such int is disallowed.....if used for anyother purpose, its allowed

Start a New Discussion

view all classess

Forum Home