Disallowance of Claim for Interest Expense u/s 36(1)(iii): ITAT Directs AO to Verify Business Nexus and Reassess Deduction [Read Order]

The CIT(A) upheld the AO's decision, but the ITAT observed that the alternate claim under Section 36(1)(iii) was not considered
By Sneha Sukumaran Mullakkal - On March 19, 2025 4:49 pm - 3 mins read
Interest Expense - Reassess Deduction - Disallowance of Claim - taxscan

The Ahmedabad Bench of Income Tax Appellate Tribunal ( ITAT )  directed the Assessing Officer ( AO ) to verify the business nexus of the interest expense claimed under Section 36(1)(iii) and reassess the deduction, while also examining the validity of the nexus for the claim under Section 57 of Income Tax Act,1961. Jitendra Prakashchandra…

Your free access to Taxscan has Expired

To read the article, get a premium account.

Taxscan Premium

Why should you subscribe?
  • Enjoy our website without interruptions from advertisements
  • Receive Daily newsletters
  • Receive realtime Telegram/Whatsapp news updates
  • Download original Judgements / Order / Notifications / Circulars, etc
  • Enjoy exclusive entry fees to Simplified series. (Webinars, Seminars, masterclasses, etc.)
  ₹2299 + GST for 1 year

Subscribe Now

Already a member? Log in here

Topics

taxscan-loader