Disallowance of Interest not sustainable if nexus between income & expenses established

Harsh Nareshbhai Patel Vs ITO (ITAT Ahmedabad) The Ahmedabad ITAT recently ruled in favor of the assessee, Harsh Nareshbhai Patel, allowing a deduction under Section 57 of the Income Tax Act, 1961. The appeal arose from the assessment year 2017-18, during which the Assessing Officer (AO) disallowed the deduction of ₹30,37,469 on the grounds of insufficient documentation to establish a clear nexus between the expenses claimed and the income earned. The AO had noted that key records, including bank statements and confirmations of interest payments, were not provided during scrutiny, leading to...