Disallowance of interest on bank overdraft u/s 40(a)(ia) of the Income Tax Act

Last updated: 10 November 2021
Quick Summary
This Income Tax Appellate Tribunal ruling addresses the disallowance of depreciation claimed on goodwill acquired through a business transfer agreement. The assessee claimed depreciation on the goodwill of a vocational training institute. The Tribunal noted that while the issue of charging interest under Section 201(1A) was considered in a previous case, the current matter concerns the allowability of such interest as a business expense. An identical issue was decided against the assessee by the Delhi bench of the Tribunal.

Court :
ITAT Bangalore

Brief :
The assessee has filed this appeal challenging the order dated 21.10.2019 passed by Ld. CIT(A)-7, Bengaluru and it relates to the assessment year 2016-17.

Citation :
ITA No.2633/Bang/2019

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