Disallowance u/s 36(1)(iii)(proviso) applicable to extension of existing business and not to setting up altogether different or new business

IN THE ITAT MUMBAI Sheetal Drape (India) Ltd. V/s. Additional Commissioner of Income-tax-4(3) IT Appeal NO.1323 (MUM.) of 2012 [assessment year 2007-08] MAY 16, 2012 ORDER R.S. Syal, Accountant Member – This appeal by the assessee arises out of the order passed by the CIT(A)-9, Mumbai, on 16-01-2012 in relation to assessment year 2007-08. 2. The first two grounds are against confirmation of disallowance of interest of Rs. 6,57,820/-. 3. Briefly stated, the facts of these grounds are that the assessee incurred total interest expenditure of Rs. 52.69 lakhs. The AO observed...