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2013 (10) TMI 152 - GUJARAT HIGH COURTAllowability of deduction u/s 36(1)(iii) - interest on borrowed capial – Held that:- Deduction allowed relying upon the decision in the case of Core Health Care Ltd.[ 2008 (2) TMI 8 - SUPREME COURT OF INDIA], wherein it has been held that irrespective of purpose of borrowing - whether for capital or revenue expenditure, interest on such borrowings is always an allowable deduction under Section 36[1](iii) of the Act. Allowability of premium paid on redemption of debenture – Held that:- As per Hon’ble Supreme Court decision in the case of Madras Industrial Investments Corporation Limited v. Commission of Income tax [1997 (4) TMI 5 - SUPREME Court] it has been held that where the company undertakes to pay more amount than what it has borrowed, and liability to pay the excess amount undertaken to be paid by the company to fulfil its needs for borrowed money is an allowable expenditure under section 37 of the Income Tax Act – Decided accordingly. Allowability of deduction u/s 35D of the Income Tax Act – Held that:- Since last several years, the Assessing Officer granted such claim on the same consideration, therefore, such claim could not have been suddenly disallowed - Income-tax Act recognizes the principle of consistency – Decided against the Revenue.
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