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2014 (2) TMI 369 - ITAT BANGALOREDisallowance of interest on borrowed capital - Held that:- Relying upon the decision in D & H Secheron Electrodes Pvt. Ltd v. CIT [1982 (7) TMI 59 - MADHYA PRADESH High Court] - Under s. 36(1)(iii), to sustain a claim for deduction of the amount of interest, all that is necessary is that the capital must have been borrowed by the assessee; secondly, it must have been borrowed for the purpose of the business or profession of the assessee and, thirdly, that the assessee should have paid that amount by way of interest - The assessee has fulfilled all the three conditions laid down u/s 36(1)(iii) to avail allowance of interest on borrowed capital - The AO was not justified in disallowing the interest debited to P&L A/c by 15% on adhoc basis - Decided against Revenue.
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