#interest deduction

ITAT Mumbai rules that Section 14A disallowance cannot apply without exempt income, and actual rent under genuine agreements prevails over notional Annual Letting Value (ALV). The decision reinforces that tax disallowances must be grounded in real income, not hypothetical valuations, impacting tax assessments for commercial property owners.

ITAT Mumbai rules that interest paid on loans for land acquisition by real estate developers qualifies as a business expense under Section 36(1)(iii) of the IT Act, as land held for development constitutes inventory, not a capital asset. This decision clarifies the tax treatment of financing costs for developers and may impact similar pending assessments.

ITAT Mumbai holds that interest on borrowings used to acquire controlling interest in a foreign subsidiary engaged in the same business is allowable under Section 36(1)(iii) as business expenditure.

ITAT Mumbai holds that deduction under Section 57(iii) cannot be denied solely due to ex parte assessment if nexus between interest paid and earned is proven through documentary evidence.