Case Law Details
Manipal Education and Medical Group India Pvt. Ltd. Vs DCIT (ITAT Bangalore)
ITAT Bangalore held that disallowance of interest u/s. 36(1)(iii) of the Income Tax Act unjustified as interest bearing funds not utilized towards purchase of capital assets (i.e. land).
Facts- The assessee is engaged in the business of providing engineering asset management and maintenance service. The case was selected for scrutiny and statutory notices were issued to the assessee.
AO further noted that the assessee has debited a sum into P&L account towards loan processing charges. On perusal of details submitted by the assessee, he observed that the loan processing charges were paid for loan for acquiring of capital assets and therefore not allowed as revenue expenditure and added to total income of the assessee.
CIT(A) upholds the disallowance of interest expenses u/s. 36(1)(iii). Being aggrieved, the present appeal is filed.
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