ITAT deletes disallowance of interest expenses under Section 40(a)(ia) claimed against rental income not business income

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....ITAT allowed the appeal and deleted the disallowance of interest expenses under Section 40(a)(ia). The Assessing Officer erroneously disallowed expenses that were not claimed against business income but against rental income. The appellant had returned business income on presumptive basis under Section 44AD and claimed the disputed interest expenses against separate rental income. ITAT held that Section 40(a)(ia) provisions under Chapter IV-D apply only to computation of income from business and profession, not rental income. The disallowance was deemed unjustified and legally unsustainable. Consequently, the penalty under Section 271(1)(c) imposed in relation to the disallowance was also deleted.....