ITAT backs woman after Rs 1 49 crore interest deduction rejected by tax department

Published on 9 May 2026

The taxman said her loan purpose failed

An ITAT Mumbai ruling granted a woman a Rs 1.49 crore interest deduction after she borrowed money to invest in a venture capital fund. The Income Tax Department had rejected her claim, but the tribunal allowed it, pointing to consistent acceptance of similar deductions and holding that she provided adequate evidence the borrowed funds were used to generate income.

Woman claimed Rs 1.49 crore interest deduction on VC fund loan
Income Tax Department denied the deduction
ITAT allowed it, stressing consistency and proper documentation
Fund utilisation for income generation was considered sufficient

#itat #tax litigation #income tax #interest deduction #venture capital

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ITAT backs woman after Rs 1 49 crore interest deduction rejected by tax department

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