Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (7) TMI 1698 - AT - Income TaxExpenditure claimed u/s.36(1)(iii) - difference between interest received and interest paid - HELD THAT:- Assessee has been considered as an investment company and making investments was part of its business. In the case of CIT vs. Shriram Investments (Firm) [2013 (11) TMI 1656 - ITAT CHENNAI] held that deduction u/s.36(1) (iii) of the Act had to be allowed in respect of interest paid, if capital was borrowed for the purpose of business or profession. As already mentioned there is no finding by any of the lower authorities that disparity between interest receipts and payments arose on account of charging of lower rate of interest on loans advanced when compared to interest paid on loans received. AO was not justified in making a disallowance for the difference between interest received and interest paid by the assessee. Disallowance stands deleted.- Decided in favour of assessee.
|