ITAT Mumbai – Interest on Unsecured Loans Allowed Once Genuineness Accepted; Brought-Forward Loss Issue Restored

Haresh Ravji Majethia Vs ACIT (ITAT Mumbai) In Haresh Ravji Majethia (AY 2014-15), the AO disallowed interest of ₹7.64 L paid on unsecured loans and denied set-off of brought-forward losses. The ITAT observed that in earlier assessment years the genuineness of the same loan creditors had already been accepted by CIT(A). Since identity, creditworthiness & genuineness stood established and TDS was duly deducted, interest paid on such loans could not be disallowed. Accordingly, the addition relating to interest expenditure was deleted. Regarding brought-forward losses, the Tribunal noted th...