Interest on home loan for house acquired for residence of directors is allowable 

Bhagat Motor Company Pvt. Ltd Vs ACIT (ITAT Delhi) The assessee has claimed expenses on account of interest on property loan of 40,70,286/- in P&L account. The AO disallowed the same on the grounds that it is not incurred for the purpose of business or profession. The AO has also mentioned that the purpose of loan was not clear whether it was for business or not. During the appellate proceedings, the assessee has submitted that it has taken loan for purchase of two residential properties which have been allotted to two Directors for their residential purposes. It was submitted that the per...