ITAT Upholds Large Interest Expense Deduction of Rs. 204 Cr for Real Estate Projects

Wadhwagroup Holdings Private Limited Vs ACIT (ITAT Mumbai) Conclusion: Tribunal granted substantial relief to Wadhwagroup Holdings by deleting tax disallowances aggregating ₹2,13,03,85,960. Tribunal dealt with issues relating to subleasing expenses, reversal of flat sales, project construction costs, interest expenditure, classification of common area maintenance (CAM) charges, and deemed rental income under the Income Tax Act, 1961, and ruled largely in favour of the assessee. Held: Assessee-a real estate developer was engaged in construction, leasing, and subleasing of commercial propertie...