Win for Piramal Enterprises: ITAT Deletes 80IC Disallowance, Rejects Interest Allocation to Baddi Unit Funded by Rights Issue

The ITAT has ruled in favor of Piramal Enterprises, deleting an 80IC disallowance and rejecting interest allocation to its Baddi unit funded by a rights issue. The tribunal found that the interest expenses were legitimately incurred and should not be disallowed. This decision provides relief to Piramal Enterprises, ensuring that its tax liabilities are fairly assessed. It clarifies that expenses related to business operations, including interest on funds raised through a rights issue, are deductible. The ruling supports consistent and equitable tax treatment for businesses operating across different units.