Interest Allowable Despite Lower Rates on Loan Given Than Loan Taken

Girishbhai Vadilal Shah Vs DCIT (ITAT Ahmedabad) ITAT Ahmedabad allows Interest expenses even if interest rate charged by the assessee on loans given was lower than the rate paid on loans taken, thus disallowing the excess interest paid. Tribunal held that the only requirement for claiming expenses under Section 57(iii) is that they must be incurred wholly and exclusively for the purpose of earning income from other sources.  The case of Girishbhai Vadilal Shah vs. DCIT (ITAT Ahmedabad) revolves around the disallowance of interest expenses claimed by the assessee under Section 57(iii) of the ...