The Tribunal held, that the CIT (A) rightly allowed the assessee’s interest expenditure as the loan taken was a short terms loan. Proper disclosure regarding the nature, payments and tenure of the loans were reflected in the Tax Audit Report. (AY. 2009-10, 2011-12)
ACIT v. Rohit and Co. (2022)97 ITR 223 (Kol.) (Trib)
S. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Interest-Higher rate-Business urgency-allowable as deduction [S. 37(1), 40A(2)(b)]