ITAT Delhi Upholds External Development Charges Interest as Revenue Expense

ACIT Vs Maximal Infrastructure Private Limited (ITAT Delhi) The Income Tax Appellate Tribunal (ITAT), Delhi, has dismissed an appeal by the revenue department, reinforcing the principle that interest paid on External Development Charges (EDC) is a deductible business expenditure and not a capital or penal expense. The case, ACIT vs Maximal Infrastructure Private Limited, centered on a disallowance of Rs. 5.47 crore that the Assessing Officer (AO) had made and the Commissioner of Income Tax (Appeals), or CIT(A), had reversed. The dispute arose during the Assessment Year 2015-16. The assessee, M...