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2017 (10) TMI 1627 - HC - Income TaxInterest on Secured Promissory Notes - admittedly the said interest was in respect of the capital borrowed for the purposes of the business of the assessee - HELD THAT:- We may notice that in case of this very assessee [2017 (11) TMI 63 - GUJARAT HIGH COURT] Assessee's claim of deduction arises out of section 36(1)(iii) of the Act under which while computing the income u/s 28 of the Act, the deduction of the amount of interest paid in respect of capital borrowed for the purposes of the business or profession would be a deductible expenditure. The first objection of the Revenue is squarely covered by the judgment in case of Core health Care ltd [2008 (2) TMI 8 - SUPREME COURT] While confirming the decision of this Court, it was held that for the said deduction, all that was necessary was that the money i.e. capital must have been borrowed by the assessee, that it must have been borrowed for the purpose of business and lastly, that the assessee must have paid interest on the borrowed amount. All that is germane is whether the borrowing was, or was not, for the purpose of the business. It was held that the provision makes no distinction between money borrowed to acquire a capital asset or a revenue asset. Decided in favour of the assessee.
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