Where interest paid for the acquisition of the asset and the asset is not for extension of existing business of the Assessee, it was held that the disallowance of interest expenses cannot be sustained. Dy. CIT v. Core Health Care Ltd (2008) 298 ITR 194 (SC) referred. (AY. 2014-15, 2015-16)
Golf view Homes Ltd. v. ACIT (2021) 212 TTJ 472 / 88 ITR 423 / 207 DTR 199(Bang.)(Trib.)
S. 36(1)(iii) : Interest on borrowed capital-Acquisition of capital asset is not an extension of existing business-Advance less than available free funds-Interest cannot be disallowed. [S. 37(1)]