No Interest Deduction u/s 24(b) on Borrowings for Tenant Compensation

Michelle Y. Poonawalla Vs DCIT (ITAT Pune) No Deduction of Interest u/s 24(b) on Borrowed Funds Used to Compensate Tenants for Relinquishment of Tenancy Rights :Pune ITAT In a combined order covering, Pune ITAT dismissed appeals against disallowance of interest u/s 24(b) claimed on borrowed capital used to compensate tenants for giving up tenancy rights. Assessee had borrowed funds & utilized them to make payments to tenants for vacating premises and thereafter claimed deduction of interest u/s 24(b), contending that such borrowings were linked to acquisition of property income. AO rejecte...