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2016 (6) TMI 484 - ITAT DELHIDisallowance of claim for deduction being interest expenses - interest bearing funds were utilised for making investment in capital assets - Held that:- Undisputedly the fact is that the assessee is the business of “Mall cum Multiplex Activities, running of departmental stores, Food Court, retail chain, Cinemas, Club etc.” under the name and style of M/s SRS Ltd. The advance given was for the acquisition of a commercial complex to be constructed. The transaction ultimately did not take place and the assessee got back the advances. On these facts and circumstances, we are of the considered view that the advances were given for the purpose of business of the assessee. In our considered view, as advance was given for the purpose of business, no disallowance can be made under section 36(1)(iii) of the Act. - Decided in favour of assessee.
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