Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2013 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (3) TMI 168 - HC - Income TaxDeduction of Interest paid in respect of capital borrowed for the projects - distinction between capital borrowed for acquiring capital assets or revenue assets - held that:- The Apex Court in the decision of the Core Health Care (2008 (2) TMI 8 - SUPREME COURT OF INDIA) thus has recognized the assessee's entitlement of deduction of interest under Section 36(1)(iii) for borrowed capital by holding that all that Section requires is that the assessee must utilize such amount for the purpose of business which is carried on by the assessee in the accounting year and regardless of result of use of such capital. Based on ratio, Tribunal also held that no distinction can be made between the money borrowed for acquiring capital asset or revenue asset as Legislature has not made such distinction of use of capital on the basis of capital purpose or revenue purpose. - Decided in favor of assessee.
|