Interest Expense would be allowed only if there is nexus between Expense and Income Earned

Advertisement Revenue raised an appeal against the order of CIT (A) deleting the addition of Rs. 10,38.237/- made by the assessing officer in its order issued u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred as “the Act”). Brief of the case In the case of ACIT Vs. Shri JugalKishore K. Agrawal, ITAT Ahmedabad on the basis of revenue observation and after going thought the case file, held that if there is no nexus between the interest income earned and interest paid, then interest paid cannot be allowed within preview of section 57(iii). Further, this case is initiated as ex ...