ITAT Directs AO to Verify Business Nexus for Interest Expense Deduction

Jitendra Prakashchandra Shah Vs ACIT (ITAT Ahmedabad) The Income Tax Appellate Tribunal (ITAT) Ahmedabad has directed the Assessing Officer (AO) to reassess Jitendra Prakashchandra Shah’s claim for interest expenses, specifically under Section 36(1)(iii) of the Income Tax Act. The dispute arose from Shah’s claim of ₹69,36,456 as interest deduction against “income from other sources,” despite initially being selected for limited scrutiny on this issue. During assessment, Shah clarified that ₹59,25,359 of this amount should have been claimed as business expenses under Sec...