Interest on Loans for Investment in Agricultural Land not allowable

ACIT Vs Ms. Mini Muthoottu Credit India (P) Ltd. (ITAT Cochin) It is established clearly that the assessee used the borrowed funds for the purchase of agricultural land. The Assessing Officer has considered the proportionate interest funds used for the purchase of agricultural land and considered only Rs.90,73,279/- out of the total interest paid of Rs.1,39,31,775/-. Being so, there cannot be further allowance of any relief to the assessee. In other words, merely because the assessee did not earn agricultural income to the extent of disallowance of interest, disallowance cannot be reduced. It ...