https://www.taxtmi.com/caselaws?id=59021 The appeal by the assessee regarding the disallowance of interest under section 40A(8) of the Income Tax Act, 1961 for the assessment year 1977-78 was dismissed. The Tribunal held that the percentage of the loan should be determined based on the date of creation of the mortgage, not the date section 40A(8) was implemented. The argument that the company should be exempt as a financial company was rejected since its primary business was construction and sale of flats, not financing housing projects. Consequently, the disallowance of the interest amount was affirmed. en-us Fri, 29 Oct 1982 00:00:00 +0530 Thu, 23 Dec 2010 16:02:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59021 The appeal by the assessee regarding the disallowance of interest under section 40A(8) of the Income Tax Act, 1961 for the assessment year 1977-78 was dismissed. The Tribunal held that the percentage of the loan should be determined based on the date of creation of the mortgage, not the date section 40A(8) was implemented. The argument that the company should be exempt as a financial company was rejected since its primary business was construction and sale of flats, not financing housing projects. Consequently, the disallowance of the interest amount was affirmed. Case-Laws Income Tax Fri, 29 Oct 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59021