Business Expense not deductible against rent income in the absence of business activity

 The main claim in the present year is a sum of Rs. 14,50,123 which represents interest expenses on the loans used for construction of the building and which according to assessee deserves to be allowed under section 24(b) of the Income-tax Act, 1961 against the rental income.

According to the Assessing Officer, the assessee company has not carried out any business activities. It has shown only rental income and against the rental income, such type of business expenses cannot be allowed. Learned

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