Loan Availed in Earlier Years: No Annual Commercial Expediency Proof Needed

PCIT Vs N. S. Software (Delhi High Court) Facts of the case:- During previous year relevant to A.Y. 2005-06, the assessee had taken loan from the bank. During the period spanning between A.Y. 2005-06 to A.Y. 2011-12, interest on loan paid by the assessee to the bank was allowed as deductible expenditure under section 36(1)(iii) of the Income-tax Act, 1961. It is only during A.Y.s 2012-13, 2013-14, 2014-15 and 2015-16, expenditure by way of interest on loan from bank was disallowed. The disallowance was made on account of the fact that the funds/loans received from bank had been diverted as int...