Int. deductible only if funds are used for business purpose

Bagadia Properties Private Limited Vs ITO (ITAT Bangalore) It cannot be always presumed that the loans given to subsidiary companies are for business purposes. It is required to be proved that the subsidiary company has used the interest free loans for some business purposes. Facts- The assessee is undertaking the business of real estate development and builders. The assessee filed its ROI for AY 2014-15 declaring a total income of Rs. 3,52,160. The AO disallowed part of interest expenses amounting to Rs. 1,50,73,571. Notably, the assessee is following the “Project completion method” for d...