Deduction of Interest and Management expenses was allowable due to business purpose u/s 36(1)(iii) and 37(1) 

ACIT Vs PGF Ltd (ITAT Delhi)

Conclusion: Deductions of Rs. 2.93 crore in interest expenses and Rs. 4.01 crore in management expenses was allowable as they were incurred for business purposes under Sections 36(1)(iii) and 37(1).

Held: Assessee was engaged in diverse businesses such as real estate, commercial land, timber, and spices, faced scrutiny from AO. AO disallowed several claims, including Rs. 2.93 crore in interest expenses, Rs. 4.01 crore in indirect management expenses, and Rs. 2.52 crore in land development expenditure, among other

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