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2013 (12) TMI 1263 - HC - Income TaxDisallowance of interest on capital borrowed for capital WIP - Held that:- AO did not give clear finding on the issue and made adhoc disallowance of 15 % from the profit and loss account - There is no finding recorded by AO that the textile project was not by way of expansion of business - The interest on the borrowed amount for the project was to be allowed as revenue expenditure, as held by the Tribunal - The Tribunal being final court of accepting any finding has found justification in the order of CIT (A) in deleting the addition of ₹ 14,52,654/- because on the facts of the case that the assessee had used the funds for the purpose of its business - Decided in favour of assessee.
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