https://www.taxtmi.com/caselaws?id=753190 Kerala HC upheld disallowance of interest expense under Section 36 of Income Tax Act. Appellant claimed loan proceeds were used for business purposes, but evidence showed funds were utilized to purchase agricultural land yielding exempt agricultural income. Court found no material evidence demonstrating land was used for appellant's asset management business despite being recorded as business asset in balance sheet. Since agricultural income is exempt under Section 10(1) and expenses related to exempt income cannot be claimed under Section 14A, interest expense was properly disallowed. Appeal dismissed in favor of revenue. en-us Mon, 25 Mar 2024 00:00:00 +0530 Mon, 27 May 2024 21:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753190 Kerala HC upheld disallowance of interest expense under Section 36 of Income Tax Act. Appellant claimed loan proceeds were used for business purposes, but evidence showed funds were utilized to purchase agricultural land yielding exempt agricultural income. Court found no material evidence demonstrating land was used for appellant's asset management business despite being recorded as business asset in balance sheet. Since agricultural income is exempt under Section 10(1) and expenses related to exempt income cannot be claimed under Section 14A, interest expense was properly disallowed. Appeal dismissed in favor of revenue. Case-Laws Income Tax Mon, 25 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753190