Assessment Challenge Fails as AO Cannot Question Commercial Wisdom of Borrowing

PCIT Vs Ebony Retail Holdings Ltd (Delhi High Court) Delhi HC Dismisses Tax Appeal Because Loan Repayment Was a Business Decision; Interest Expense Allowed Because Loan Was Used for Business Necessity; Delhi HC Upholds Deduction Because Repayment of Earlier Loan Is a Business Decision; Loan Expenditure Allowed Because Refund of Share Application Money Was a Statutory Obligation. The Delhi High Court first considered two applications seeking condonation of delay. It condoned a delay of 254 days in re-filing the appeal for the reasons stated in the application. It also condoned a delay of 558 da...