https://www.taxtmi.com/caselaws?id=391762 The Tribunal upheld the decision of the CIT(A) to disallow the addition of Rs. 12 lakhs by the Assessing Officer. It was determined that since the land purchased with borrowed funds was not utilized for business purposes, the interest expenditure could not be claimed as a deduction. The Tribunal applied the proviso to Section 36(1)(iii) of the Income Tax Act, stating that interest on borrowed funds for capital assets is disallowed until the asset is put to use. The appeal was dismissed, and the addition of Rs. 12 lakhs was upheld. en-us Mon, 03 Feb 2020 00:00:00 +0530 Thu, 06 Feb 2020 17:58:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=391762 The Tribunal upheld the decision of the CIT(A) to disallow the addition of Rs. 12 lakhs by the Assessing Officer. It was determined that since the land purchased with borrowed funds was not utilized for business purposes, the interest expenditure could not be claimed as a deduction. The Tribunal applied the proviso to Section 36(1)(iii) of the Income Tax Act, stating that interest on borrowed funds for capital assets is disallowed until the asset is put to use. The appeal was dismissed, and the addition of Rs. 12 lakhs was upheld. Case-Laws Income Tax Mon, 03 Feb 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=391762