ITAT Chandigarh Favors Assessee in Borrowed Funds Nexus Dispute

DCIT Vs Mahesh Kumar Goyal (ITAT Chandigarh) The Income Tax Appellate Tribunal (ITAT), Chandigarh Bench, has dismissed an appeal filed by the revenue in the case of DCIT Vs Mahesh Kumar Goyal, pertaining to Assessment Year (AY) 2012-13. The Tribunal’s decision, pronounced on July 15, 2025, upholds the order of the Commissioner of Income Tax (Appeals)-3, Ludhiana [CIT(A)], which had partially deleted an interest disallowance made by the Assessing Officer (AO) under Section 57(iii) of the Income-tax Act, 1961. The central issue in the appeal was the disallowance of interest expenditure cla...