ITAT Allows Interest Payment on Previously Accepted Loans, Deletes Addition

Bagla Agro Limited Vs DCIT (ITAT Kolkata) The Income Tax Appellate Tribunal (ITAT), Kolkata bench, has allowed appeals filed by Bagla Agro Limited for the assessment years (AY) 2019-20 and 2021-22, deleting an addition made by the Assessing Officer (AO) and confirmed by the Commissioner of Income-tax (Appeals) [CIT(A)] regarding interest paid on a loan. The case for AY 2021-22 involved an addition of ₹1,70,607 made by the AO. The AO had treated this amount, paid as interest on a loan from M/s Chordia Trade Credits Private Limited, as a bogus expenditure. The AO’s reasoning was based on...