Home Loan Interest Disallowance Remanded Due to New Evidence on Business Use of Loan

Prakash Katariya Vs ITO (ITAT Pune) The appeal before the Income Tax Appellate Tribunal, Pune Bench concerned disallowance of interest expenditure claimed by an individual assessee for Assessment Year 2020–21. The assessee had filed a return declaring a business loss, largely attributable to interest expenses of ₹46,24,948 debited to the Income and Expenditure Account. During limited scrutiny, the Assessing Officer noted that the interest related to loans classified as housing loans sanctioned by L&T Finance Home Loans for a property at Aundh, Pune. The loan accounts showed different ...