There no merit in the argument of the ld. DR that unless some ...

Loan Interest Deduction Valid Without Immediate Revenue if Business Purpose Proven; No Excessive Spending Found.

January 18, 2024

Case Laws     Income Tax     AT

There no merit in the argument of the ld. DR that unless some revenue is shown from the project, the assessee cannot justify the loan and the interest expenditure was rightly disallowed. We are of the considered view that when business expediency in regard to the expenditure is established how far it fetches revenue in the relevant assessment year is not of much consideration unless there is specific evidence of wasteful or excessive expenditure, which is not the case here. - AT

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