Case Law Details
Case Name : Coffee day Enterprises Ltd. Vs. ITO (ITAT Bangalore)
Related Assessment Year : 2009-10
Courts :
All ITAT ITAT Bangalore
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Coffee day Enterprises Ltd. Vs. ITO (ITAT Bangalore)
As no activity was undertaken by the assessee which could be said to be business activity, no deduction was allowable under section 36(1)(iii). Thus, AO was justified in disallowing the interest paid on borrowed capital to assessee.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
This appeal filed by the assessee is directed against the order of learned Commissioner (Appeals) – 2, Bangalore dated 13-4-2017 for assessment year 2009-10.
2. The grounds raised by the assessee are as under :–
“1. The order of the learned Commissioner (App...
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OFFHAND
Implications of the recent ITAT Ruling in the two cases, reported @
https://taxguru.in/…/investments-held-as-stock-in-trade-do-…
https://taxguru.in/income-tax/in-absence-of-business-activities-interest-on-borrowed-capital-not-allowable.html
is worth closely examining, and incisively analyzing, keeping in focus the mutually contradicting views handed down by the HC and the SC in Maxopp’s case on issues u/s 14 A rw Rule 8D !