Disallowance of Interest Unsustainable Without Final Decision on Loan Validity: ITAT Mumbai

United Builders Vs ACIT (ITAT Mumbai) The Income Tax Appellate Tribunal Mumbai adjudicated an appeal concerning disallowance of interest expenditure under Section 69C of the Income-tax Act for assessment year 2015-16. The assessee, a partnership firm engaged in the business of builders and developers, had claimed interest expenditure of ₹25,07,683 on unsecured loans. The Assessing Officer disallowed the interest on the ground that the underlying unsecured loans were found to be non-genuine in assessment year 2013-14, as the identity, creditworthiness of lenders, and genuineness of transactio...