Is interest expenditure incurred on capital borrowed for acquiring a capital asset entitled for deduction?

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Last updated: 22 May 2021
Quick Summary
This Income Tax Appellate Tribunal case examines whether interest expenditure on capital borrowed to acquire a capital asset is eligible for tax deduction. The Assessing Officer disallowed the interest, arguing it wasn't deductible until the asset was first used in business. The CIT(A) upheld this, citing a concession from the assessee. However, the Tribunal found no evidence of such a concession and has directed the Assessing Officer to re-examine the issue.

Court :
ITAT Hyderabad

Brief :
This assessee’s appeal for AY.2014-15 arises from the CIT(A)-6, Hyderabad’s order dated 31-01-2018 passed in case No.0285/2016-17/A3/CIT(A)-6, in proceedings u/s.143(3) of the Income Tax Act, 1961 [in short, ‘the Act’]. Heard both the parties. Case file perused.

Citation :
I.T.A. No.784/HYD/2018

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1999
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3499
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