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2017 (4) TMI 771 - HC - Income TaxDisallowance of interest - interpretation of Section 57 (iii) - Held that:- In the facts of this case, it is evident that the purpose for creating the FD was solely to secure the loan that the assessee obtained and not for the purpose of earning interest as is insisted upon under Section 57. Interest income out of the FDRs made with the bank - Held that:- The Court is of the opinion that the ITAT’s view that since the last transaction, i.e., borrowing to the tune of ₹ 7.2 crores could not be doubted, the addition made was not permissible, is correct.
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