https://www.taxtmi.com/caselaws?id=422339 The ITAT upheld the CIT(A)'s decision, allowing the deduction of interest expenses claimed by the assessee under Section 36(1)(iii) of the Income Tax Act. It was held that interest on borrowed funds used for stock-in-trade is deductible, following precedents and jurisdictional High Court decisions. The proviso to Section 36(1)(iii) was deemed inapplicable as the borrowed funds were utilized for stock-in-trade, not capital assets. The ITAT emphasized that interest expenses should be deducted in the year incurred and cannot be claimed again as part of the work in progress in subsequent years to avoid double deduction. The appeals by the Assessing Officer for the relevant assessment years were dismissed. en-us Tue, 12 Apr 2022 00:00:00 +0530 Fri, 13 May 2022 07:51:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=422339 The ITAT upheld the CIT(A)'s decision, allowing the deduction of interest expenses claimed by the assessee under Section 36(1)(iii) of the Income Tax Act. It was held that interest on borrowed funds used for stock-in-trade is deductible, following precedents and jurisdictional High Court decisions. The proviso to Section 36(1)(iii) was deemed inapplicable as the borrowed funds were utilized for stock-in-trade, not capital assets. The ITAT emphasized that interest expenses should be deducted in the year incurred and cannot be claimed again as part of the work in progress in subsequent years to avoid double deduction. The appeals by the Assessing Officer for the relevant assessment years were dismissed. Case-Laws Income Tax Tue, 12 Apr 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=422339