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2014 (12) TMI 722 - HC - Income TaxInterest expenses u/s 36(1)(iii) - Whether the Tribunal is right in confirming the order of the CIT(A) deleting the addition made u/s.36(1)(iii) by the AO on account of interest expenditure – Held that:- Interest expenditure was disallowed mainly on the ground that the interest payment was not made in respect of capital borrowed during the course of business – assessee was under contractual obligation to make payments to the companies and it formed part of the costs of purchase of shares - interest paid for the debt incurred or paid as obligation under any agreement is allowable as expenditure - assessee was dealing in shares and that he had made interest payments to M/s. Arora Corporation and M/s. Rushabh Capital and Finance Ltd. - interest expenditure is allowable u/s 37(1) if the same is not covered by Section 36(1)(iii) and rightly held that the disallowance of interest expenditure to the extent by AO was bad in law and the Tribunal committed no error of law in confirming the order of the CIT(A) – Decided against revenue.
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