Routine establishment expenses & loan interest for general business allowable

Gauri Construction Company Vs ACIT (ITAT Mumbai) Introduction: Gauri Construction Company faced a dispute with the Income Tax Department concerning deductions for routine establishment expenses and interest on loans. The Income Tax Appellate Tribunal (ITAT) in Mumbai recently ruled on this matter, overturning the decision of the Commissioner of Income Tax (Appeals) [CIT(A)]. Detailed Analysis: The crux of the issue lay in the disallowance of expenses totaling Rs. 2.35 crores by the Assessing Officer (AO), which the CIT(A) upheld. These expenses included construction, establishment, and interes...