Can financial charges be allowed as business expenditure even though there was no business expediency?

Last updated: 05 September 2021
Quick Summary
The Income Tax Appellate Tribunal considered whether financial charges could be allowed as business expenditure even if there was no clear business expediency. The tribunal noted that the assessee was unable to quantify the exact amount of borrowed funds used for non-business purposes. This ruling addresses the complexities of attributing expenditure to business activities when funds are mixed.

Court :
ITAT Hyderabad

Brief :
All these appeals filed by the Revenue are directed against separate orders of CIT(A) for the AYs mentioned at Cause title involving proceedings u/s 143(3) of the Income- Tax Act, 1961.

Citation :
ITA Nos. 1745/H/2016 and 1120, 1121 & 1663/H/2017

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1 Year PLAN
1999
(Excl. of GST ₹359)

BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)

3 Months PLAN
999
(Excl. of GST ₹179)

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