ITAT Allows Interest Deduction as Overseas Acquisition Held for Business Expansion

DCIT Vs Tata Steel Ltd. (ITAT Mumbai) The ITAT Mumbai adjudicated cross appeals filed by both the Revenue and the assessee against the order of the CIT(A) for Assessment Year 2008–09. The issues primarily concerned (i) addition on account of alleged excess/illegal mining and (ii) disallowance of interest expenditure incurred on borrowed funds used for acquisition of shares in a foreign subsidiary. On the Revenue’s appeal, the dispute related to an addition of Rs. 871.17 crore made by the Assessing Officer (AO) based on show cause notices issued by the Government of Odisha alleging excess m...