Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (8) TMI 1125 - AT - Income TaxDisallowance of interest paid - interest not allowable as part of the cost of shares - Held that:- As already held by the Hon’ble High Court in the case of CIT vs. Mithlesh Kumari (1973 (2) TMI 11 - DELHI High Court) the actual cost of capital asset should include interest paid on borrowed amounts at the time of purchase. The Hon’ble High Court of Madras in the case of CIT vs. Trishul Investment Ltd.[2007 (7) TMI 252 - MADRAS HIGH COURT] held that interest paid on money borrowed for acquiring the shares, would partake the character of cost of shares. There are host of other judgments also and there is no dispute principally, to include interest on borrowals as cost of shares, when the said shares are sold. Since assessee is not in the business of purchase and sale of shares, investment in shares and subsequent sale thereof, was shown under the head “Capital Gains” and since there was short term capital gains, the same was disclosed as such, after claiming interest paid as cost of shares. We do not find any reason to differ from the findings of the Ld. CIT(A). - Decided against revenue.
|