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2017 (2) TMI 397 - HC - Income TaxEntitlement to deduction of interest/service charges paid on funds raised to subscribe to the rights issue and for retaining control of 28% of its holding - Held that:- Consequently and more fundamentally the interest expenditure in the present case is not of the kind that went into capital stream. The expenditure clearly is not towards acquisition of the capital nor is it an integral part of it, it is only the service alone. It is of a similar kind that would otherwise have been permitted under Section 37 of the Income Tax Act. Since this expenditure does not pertain to the stream of income covered by Section 37 and is not excluded by Section 57 (3), it had to be and was correctly allowed. - Decided in favour of the assessee.
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