Case Law Details
Chetankumar Raojibhai Patel Vs DCIT (ITAT Ahmedabad)
Sole issue in the present appeal relates to disallowance of interest expenditure under section 36(1)(iii) of the Act.
Since the assessee has demonstrated the availability of sufficient own funds for the purpose of making interest free funds, the issue, we find, is squarely covered by the decision of the Hon’ble Apex Court in the case of Reliance Industries Ltd. (supra), following which, we hold that no disallowance under section 36(1)(vii) is warranted in the facts and circumstances of the case. Accordingly, the disallowance of interest u/s 36(1)(iii) of the Act of Rs.14,11,367/- is hereby directed to be deleted.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
The present appeal has been filed by the assessee against order passed by the Commissioner of Income Tax(Appeals)-5, Vadodara in short referred to as ld.CIT(A)) under section 250(6) of the Income Tax Act, 1961 (“the Act” for short), dated 14.09.2020 pertaining to Asst.Year 2014-15.
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