https://www.taxtmi.com/caselaws?id=769737 ITAT Ahmedabad allowed the assessee's appeal for statistical purposes regarding disallowance of interest expenses under Section 57. The AO and CIT(A) rejected the claim as the assessee failed to prove nexus between borrowed funds and funds lent. However, the tribunal noted that authorities did not consider the alternate claim under Section 36(1)(iii). The matter was remanded to AO to verify genuineness of the claim and whether interest was taken for business purposes, allowing deduction under Section 36(1)(iii) for construction business activities. en-us Fri, 24 Jan 2025 00:00:00 +0530 Thu, 01 May 2025 08:46:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=769737 ITAT Ahmedabad allowed the assessee's appeal for statistical purposes regarding disallowance of interest expenses under Section 57. The AO and CIT(A) rejected the claim as the assessee failed to prove nexus between borrowed funds and funds lent. However, the tribunal noted that authorities did not consider the alternate claim under Section 36(1)(iii). The matter was remanded to AO to verify genuineness of the claim and whether interest was taken for business purposes, allowing deduction under Section 36(1)(iii) for construction business activities. Case-Laws Income Tax Fri, 24 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=769737