Borrowed Funds Interest Not Eligible for Deduction Without Commercial Expediency: Karnataka HC

Mukesh Gupta Vs DCIT (Karnataka High Court) This appeal under Section 260-A of the Income Tax Act, 1961 was filed by the assessee challenging a common order of the Income Tax Appellate Tribunal (ITAT) for Assessment Years (AYs) 2013-14, 2014-15, and 2015-16. The assessee, an individual and Director of Smile Electronics Limited, had filed returns for the relevant years, which were selected for scrutiny. The Assessing Officer treated a receipt of Rs. 66,00,000 from the company as salary, rejecting the assessee’s claim that it was professional or technical service fees. The Assessing Officer he...