Department can’t to decide when assessee to borrow and when it should not borrow

SUMMARY OF CASE LAW The assessee may make an imprudent business decision but the same itself does not empower the Revenue to disallow legitimate and bona fide business expenditure.   RELEVANT PARAGRAPH We have heard the rival submissions and perused the orders of the lower authorities and the material available on record. In the instant case it is observed that interest expenditure claimed by the assessee at an amount of Rs. 27.90 lacs was disallowed by the Assessing Officer which was restricted by the Commissioner (Appeals) to Rs. 27.75 lacs being net amount of interest paid by the assessee...