https://www.taxtmi.com/caselaws?id=430249 The High Court of Karnataka upheld the decision of lower authorities, ruling in favor of the assessee in a case concerning the treatment of interest expenditure as capital expenditure for business purposes under Section 36(1)(iii) of the Income Tax Act. The Court determined that since the borrowed funds were not used to acquire any asset for extending the existing business and the Earnest Money Deposit (EMD) was returned to the assessee with interest, the interest expenditure was allowable under Section 36(1)(iii) for the Real Estate development business. The Revenue's appeal was dismissed. en-us Mon, 10 Oct 2022 00:00:00 +0530 Tue, 15 Nov 2022 09:17:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=430249 The High Court of Karnataka upheld the decision of lower authorities, ruling in favor of the assessee in a case concerning the treatment of interest expenditure as capital expenditure for business purposes under Section 36(1)(iii) of the Income Tax Act. The Court determined that since the borrowed funds were not used to acquire any asset for extending the existing business and the Earnest Money Deposit (EMD) was returned to the assessee with interest, the interest expenditure was allowable under Section 36(1)(iii) for the Real Estate development business. The Revenue's appeal was dismissed. Case-Laws Income Tax Mon, 10 Oct 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=430249