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Business Expense not deductible against rent income in the absence of business activity
Case Law Details
- Case Name
- Rare Garments (P.) Ltd. Vs Assistant Commissioner of Income-tax, Circle 15(1), New Delhi (ITAT Delhi)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2008-09
- Courts
- All ITAT, ITAT Delhi
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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 Assessing Officer further observed that vide letter dated 11th September, 2008, assessee has give...
