AO cannot disallow interest expense on Mere Presumption without disproving supporting evidences

J.M. Mhatre Infra Private Limited Vs ACIT (ITAT Mumbai)

Introduction: In a significant legal development, the Income Tax Appellate Tribunal (ITAT) Mumbai delivered a landmark verdict in the case of J.M. Mhatre Infra Private Limited vs. Assistant Commissioner of Income Tax (ACIT). The case pertained to the disallowance of interest amounting to Rs. 1,16,82,953/- paid on an unsecured loan. This ruling sheds light on the meticulous examination of evidence and the importance of substantiating claims in tax matter

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