https://www.taxtmi.com/caselaws?id=783686 Interest on borrowed funds for acquisition of a commercial property was disallowed as a business deduction under s. 36(1)(iii) because the assessee failed to demonstrate that the property was acquired and/or used for its business; the ITAT affirmed the disallowance. However, since the property was not occupied for business, its annual value was assessable under the head "Income from House Property" under s. 23, and interest paid on borrowings for acquiring the property was deductible from such annual value under s. 24(b). The matter was remanded to the AO to compute the property's annual value and allow the s. 24(b) interest deduction after granting opportunity of hearing. en-us Thu, 18 Dec 2025 00:00:00 +0530 Sat, 20 Dec 2025 07:45:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=783686 Interest on borrowed funds for acquisition of a commercial property was disallowed as a business deduction under s. 36(1)(iii) because the assessee failed to demonstrate that the property was acquired and/or used for its business; the ITAT affirmed the disallowance. However, since the property was not occupied for business, its annual value was assessable under the head "Income from House Property" under s. 23, and interest paid on borrowings for acquiring the property was deductible from such annual value under s. 24(b). The matter was remanded to the AO to compute the property's annual value and allow the s. 24(b) interest deduction after granting opportunity of hearing. Case-Laws Income Tax Thu, 18 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=783686