Mixed-Funds Interest Disallowance Needs AO Review

Aadya Overseas Private Limited Vs ITO (ITAT Delhi)

Mixed-funds dispute needs fresh verification: ITAT remands proportionate interest disallowance to AO

Delhi ITAT set aside the confirmation of proportionate interest disallowance of ₹16.58 lakh & remanded the matter to the AO for limited verification. The disallowance was sustained by CIT(A) on the ground that Assessee failed to produce documentary evidence to show that investments were not made from mixed funds & that borrowed funds were not used for non-business purposes.

Tribunal observed

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