Interest Paid to Earn Interest Is Allowable: ITAT Allows Section 57(iii) Deduction Despite Ex-parte Assessment

Ankur Chandulal Shah Vs ACIT (ITAT Mumbai)

The Mumbai Bench of the ITAT deleted the disallowance of ₹1.06 crore claimed under section 57(iii) towards interest expenditure, holding that the assessee had clearly established a direct and proximate nexus between interest paid and interest earned under the head “Income from Other Sources”.

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