Interest on Loans utilized for Business allowable as Business Expenditure

Spaarkon Trading Chennai Pvt. Ltd. Vs ACIT (ITAT Chennai) Upon perusal of loan sanction letter dated 12-05-2010 issued by Standard Chartered Bank, it could be seen that the assessee has been sanctioned term loan of Rs. 32 Crores for the purpose of part financing the purchase of equipments to be leased by the assessee under a Lease Agreement on a BOO/BOOT basis to M/s Everonn Education Limited (EEL). These Equipments would be used by EEL to execute the contract that it has received from Director General of School Education, Haryana State Government. The tenor of the loan is 5 years and Equipmen...