Bona fide disclosure requirements govern under-reporting penalties, and post-penalty immunity applications cannot secure available statutory protectio...
Certificate-of-origin verification procedure governs preferential customs benefits; denial without retroactive verification was set aside with consequ...
Disciplinary Committee jurisdiction and mandatory investigation requirements invalidated cancellation of an insolvency professional's registration and...
Retention of seized property survives where recorded reasons support proceeds of crime, while stayed investigation periods are excluded from limitatio...
Disallowance of claim of interest expenses u/s. 57(iii) - The Assessing Officer (AO) had disallowed a portion of the interest expenses based on the difference between the interest charged by the appellant on loans given and the interest paid on loans taken. However, the ITAT found that since the appellant used interest-bearing funds to earn interest income, the disallowance of expenses exceeding the interest charged on loans given was not justified. - The Tribunal also criticized the AO's interpretation of the term "income," stating that as long as the expenses were incurred for the purpose of earning income, regardless of whether a profit was earned, they should be allowed as deductions under Section 57(iii) of the Act.
Disallowance of claim of interest expenses u/s. 57(iii) - The Assessing Officer (AO) had disallowed a portion of the interest expenses based on the difference between the interest charged by the appellant on loans given and the interest paid on loans taken. However, the ITAT found that since the appellant used interest-bearing funds to earn interest income, the disallowance of expenses exceeding the interest charged on loans given was not justified. - The Tribunal also criticized the AO's interpretation of the term "income," stating that as long as the expenses were incurred for the purpose of earning income, regardless of whether a profit was earned, they should be allowed as deductions under Section 57(iii) of the Act.
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