Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (3) TMI 761 - HC - Income TaxProvisions of Section 43B - whether CIT (A) was warranted in ignoring the provisions of Section 43B and granting relief of ₹ 91,97,390/- which was not actually paid by the assessee to the government/financial institution/bank - Held that:- Learned counsel for the appellant is unable to show as to how the decision of the Apex Court in the case of S.A. Builders (2006 (12) TMI 82 - SUPREME COURT ) does not apply in the matter before us wherein held that interest on barrowed capital by the assessee is to be allowed even if assessee has not charged any interest on the advances given by it out of such borrowed funds if such advances are for business purpose. It was held by the Supreme Court that such interest on borrowed funds by the assessee ought to be allowed as deduction under Section 36 (1) (iii) of the Income Tax Act; only an enquiry should be made in such circumstances as to whether the loan was given by the assessee as a measure of commercial expediency. - Decided in favour of assessee.
|