Expenditure incurred for earning income is deductible u/s 57(iii) despite no earning

West Palm Developments LLP (Formerly West Palm Developments Pvt. Ltd.) Vs ACIT (Karnataka High Court) Facts- The assessee was sanctioned a loan for a sum of Rs.35 Crores from Union Bank of India. The assessee paid a sum of Rs.33,50,00,000/- to Prestiges Estates Project Limited (PEPPL) as advance towards purchase of properties vide two cheques. However, on account of adverse market conditions, the assessee decided to withdraw from the transaction and requested PEPPL to refund the earnest money. PEPPL refunded the earnest money vide two cheques. The assessee thereafter lent money to other shareh...