Taxability of interest expenses not relatable to business activity conducted by the assessee company

Last updated: 13 September 2021

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This Income Tax Appellate Tribunal ruling concerns the taxability of interest expenses on loans obtained from shareholders. The tribunal reviewed an appeal where the Assessing Officer disallowed a portion of the interest paid, amounting to Rs. 3,64,942, under Section 36(1)(iii) of the Income-tax Act. The judgement clarifies the conditions under which such interest payments are considered relatable to business activities and thus eligible for tax deductions.

Court :
ITAT Delhi

Brief :
These two cross appeals by Revenue and Assessee are filed against the order of Learned Commissioner of Income Tax (Appeals)-25, Delhi.

Citation :
ITA No:- 198/Del/2018

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1999

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3499

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4999

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Attached File : 1442821_4408_1630650067_198_and_293_provestment_securities_pvt_ltd_.pdf

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Judgement posted by

Poojitha Raam Vinay

Practice

I simplify complex income tax, TDS, banking, and investment updates into practical insights for taxpayers, salaried professionals, pensioners, and senior citizens. I regularly write on ITR filing, tax compliance, savings schemes, and the latest financial rule changes in India.

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