2002 (8) TMI 874 - HC - Income Tax

Summary

The Madras High Court ruled in favor of the assessee, stating that the interest due to Mercantile Credit Corporation is allowable as an expenditure under section 57(iii) of the Income-tax Act, 1961. The court also held that the interest would constitute an expenditure even if the shares were not allotted to the assessee and there was no income available for consideration. The decision was based on a previous case law.