Maithan Alloys Ltd. Vs. DCIT, Cir.1(1)
Case No: ITA Nos.543 & 544/KOL/2024
Court: INCOME TAX APPELLATE TRIBUNAL “B” BENCH, KOLKATA
Date: 1/21/2025
Parties Involved
appellantMaithan Alloys Ltd.
respondentDCIT, Cir.1(1)
Facts Summary
The Assessing Officer (AO) disallowed an interest expenditure of ₹2,08,45,476/- under section 36(1)(iii) of the Act, noting that the assessee had charged ₹5,57,03,070/- as interest on loan in the profit and loss account. The AO observed that the assessee had long-term and short-term borrowings of ₹59.67 crores as on 31.03.2014 and had given some non-interest-bearing advances during the year. A show cause was issued to the assessee for proportionate disallowance of interest as the assessee had ad…
Decision in favour of
Assessee
Legal Issues
- 1. Confirmation of disallowance of ₹2,08,45,476/- by the ld. CIT (A) as made by the ld. AO by disallowing the interest expenditure u/s 36(1)(iii) of the Act.
- 2. Confirmation of disallowance u/s 2,24,651/- by the ld. CIT (A) as made by the ld. AO u/s 14A read with section Rule 8D of the Act.
1 more legal issue analysed in this judgement.
Precedents Relied Upon
7 precedents cited in this judgement.