Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (10) TMI 994 - AT - Income TaxAddition on account of interest paid on share application money - nature of expenses - revenue or capital - Held that:- It is pertinent to mention here that it is not the case of the revenue that assessee has diverted interest bearing funds without charging any interest, rather it is a case where it is an admitted position of facts that assessee has received handsome amount of interest which is not even questioned by the AO or DR, this interest has been earned as a result of the amount received from Conquer. The appellant has received share application money not to increase its capital base but for the requirements of working capital as the amount so received has been invested in the business of shares. In view of these facts and after relying on the decision of Pune ITAT in the case of SR Thorat Milk Products Pvt. Ltd. Vs ACIT [2016 (7) TMI 257 - ITAT PUNE] the interest paid on share application money is treated as revenue in nature - CIT-A was correct to delete the addition. - Decided against revenue
|