https://www.taxtmi.com/caselaws?id=761088 ITAT Kolkata allowed interest deduction u/s 36(1)(iii) on loans advanced to subsidiary AAIPL for real estate business purposes. The assessee, engaged in real estate development, had advanced funds to its 87.5% subsidiary AAIPL, which further invested in foreign subsidiaries for overseas real estate projects. Despite no interest income from AAIPL due to commercial prudence and financial distress in foreign subsidiaries, the tribunal held that interest on borrowings remained allowable as business expenditure since loans were advanced for legitimate business purposes. Revenue's appeal was dismissed, upholding CIT(A)'s order. en-us Thu, 24 Oct 2024 00:00:00 +0530 Tue, 05 Nov 2024 07:37:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=761088 ITAT Kolkata allowed interest deduction u/s 36(1)(iii) on loans advanced to subsidiary AAIPL for real estate business purposes. The assessee, engaged in real estate development, had advanced funds to its 87.5% subsidiary AAIPL, which further invested in foreign subsidiaries for overseas real estate projects. Despite no interest income from AAIPL due to commercial prudence and financial distress in foreign subsidiaries, the tribunal held that interest on borrowings remained allowable as business expenditure since loans were advanced for legitimate business purposes. Revenue's appeal was dismissed, upholding CIT(A)'s order. Case-Laws Income Tax Thu, 24 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=761088