ITAT Delhi Allows Interest Deduction as Borrowed Funds Were Used for Business Purposes

ACIT Vs Ashish Kumar Chaurasia (ITAT Delhi) The Income Tax Appellate Tribunal (ITAT), Delhi, dismissed the Revenue’s appeals for Assessment Years 2017-18 and 2018-19 and upheld the orders of the Commissioner of Income Tax (Appeals) [CIT(A)] allowing deduction of interest expenditure claimed by the assessee as business expenditure. The dispute arose when the Assessing Officer disallowed interest expenditure of ₹1,86,75,473 incurred on an unsecured loan of ₹25 crore obtained from M/s Siddhivinayak International. The assessee had initially claimed the deduction under Section 57 against inco...