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2015 (2) TMI 716 - HC - Income TaxDisallowance of interest - loan given to subsidiary company - Held that:- In the instant case, as find that the assessee had deep business interest in the existence of its subsidiary company and discharge its legal obligation by repaying the instalments of loan to the financial institutions. Such loans were given for the purpose of business. It is not even the Department's case that the amount given by the assessee was not for business purposes or that the capital borrowed was not utilised for the purpose of business. The assessee was entitled to deduction of interest amounting to ₹ 9,54,000 on the loan given to its subsidiary company. The Tribunal was not justified in disallowing the interest. - Decided in favour of assessee. Disallowance of expenses claimed towards guarantee commission - Held that:- The expenditure incurred by the assessee in obtaining an asset on deferred payment basis is a revenue expenditure and that the Tribunal committed an error in holding such expenditure to be a capital expenditure.- Decided in favour of assessee.
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