https://www.taxtmi.com/caselaws?id=427128 Interest expenditure claimed on borrowed funds used for construction of an assessee's building could not be finally disallowed where the factual basis of the borrowing, the role of the intermediary borrower, and the purpose of the funds had not been properly verified. The record was found inadequate for a merits determination because the lower authorities had not carried out sufficient enquiry into the transaction and supporting evidence. The disallowance was set aside and the matter was remitted to the Assessing Officer for fresh examination and decision in accordance with law after giving the assessee an opportunity of being heard. en-us Wed, 03 Aug 2022 00:00:00 +0530 Fri, 02 Sep 2022 08:10:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=427128 Interest expenditure claimed on borrowed funds used for construction of an assessee's building could not be finally disallowed where the factual basis of the borrowing, the role of the intermediary borrower, and the purpose of the funds had not been properly verified. The record was found inadequate for a merits determination because the lower authorities had not carried out sufficient enquiry into the transaction and supporting evidence. The disallowance was set aside and the matter was remitted to the Assessing Officer for fresh examination and decision in accordance with law after giving the assessee an opportunity of being heard. Case-Laws Income Tax Wed, 03 Aug 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=427128