https://www.taxtmi.com/caselaws?id=424708 The ITAT allowed the appeals filed by the assessee, emphasizing the importance of considering business necessity and supporting evidence for expenses incurred. The disallowance of interest expenses under Section 40A(2) was overturned as the ITAT found the restriction to 18% unreasonable. Additionally, the ad-hoc addition for travelling expenses was also in favor of the assessee. The ITAT highlighted the need for a fair assessment of expenses and interest payments in line with business requirements and market conditions, ensuring adherence to legal provisions while assessing tax liabilities. en-us Fri, 24 Jun 2022 00:00:00 +0530 Mon, 04 Jul 2022 12:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=424708 The ITAT allowed the appeals filed by the assessee, emphasizing the importance of considering business necessity and supporting evidence for expenses incurred. The disallowance of interest expenses under Section 40A(2) was overturned as the ITAT found the restriction to 18% unreasonable. Additionally, the ad-hoc addition for travelling expenses was also in favor of the assessee. The ITAT highlighted the need for a fair assessment of expenses and interest payments in line with business requirements and market conditions, ensuring adherence to legal provisions while assessing tax liabilities. Case-Laws Income Tax Fri, 24 Jun 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=424708