https://www.taxtmi.com/caselaws?id=332329 An additional ground challenging the scope of scrutiny assessment was declined because no sufficient cause was shown for not raising it before the lower authorities. Expenditure and bad debt claimed against interest income were also disallowed: the assessee had itself offered the private-loan interest under income from other sources, so related expenses could not be treated as business deductions. Even if the lending activity was assumed to be illegal money lending, Explanation 1 to section 37(1) barred allowance of expenditure incurred for a purpose that is an offence or prohibited by law. The disallowance was therefore upheld. en-us Wed, 03 Aug 2016 00:00:00 +0530 Thu, 15 Sep 2016 09:19:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=332329 An additional ground challenging the scope of scrutiny assessment was declined because no sufficient cause was shown for not raising it before the lower authorities. Expenditure and bad debt claimed against interest income were also disallowed: the assessee had itself offered the private-loan interest under income from other sources, so related expenses could not be treated as business deductions. Even if the lending activity was assumed to be illegal money lending, Explanation 1 to section 37(1) barred allowance of expenditure incurred for a purpose that is an offence or prohibited by law. The disallowance was therefore upheld. Case-Laws Income Tax Wed, 03 Aug 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=332329