ITAT Upholds PCIT’s Directive on Loan Interest and Section 14A disallowance

Thiruvenkitam Veeriah Reddiar Vs DCIT (ITAT Cochin) Income Tax Appellate Tribunal (ITAT), Cochin Bench, has dismissed an appeal by Thiruvenkitam Veeriah Reddiar, upholding an order from the Principal Commissioner of Income-tax (PCIT) for the assessment year 2020-21. The PCIT had directed the Assessing Officer (AO) to re-examine the assessee’s claim for interest on a loan, questioning its utilization for business purposes, and to verify the applicability of Section 14A of the Income-tax Act. The case originated from the assessee’s return of income, declaring Rs. 12,12,4909, which wa...