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2015 (8) TMI 16 - RAJASTHAN HIGH COURTDeduction on account of payment of interest on interest - whether was allowable under section 36(i)(iii) and Section 37(1)? - Held that:- In the present case, there is an additional feature that assessee failed to explain the amount which was claimed to be deducted under section 36(1)(iii) of the Act. It was found that the entire capital was paid and what was remaining in the account was interest on which the interest was shown and which was sought to be deducted. The AO was not satisfied with the genuineness of the entry. He observed that since the interest amounting to ₹ 1,49,85/- has already been disallowed on ingenuine credits, the balance amount was also disallowed. He had rightly relied on the judgment of Supreme Court in Shew Kissen Bhatter V/s Commissioner of Income Tax, West Bengal (1973 (3) TMI 2 - SUPREME Court) and Jaswantrai P.Mehta V/s Commissioner of Income-tax (1991 (6) TMI 62 - GUJARAT High Court ). - Decided in favour of revenue.
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