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2018 (5) TMI 743 - AT - Income TaxDisallowance being interest claimed u/s 36(1)(iii) - AO was of the view that the loan taken from Allahabad Bank was diverted for making investment by way of share application money and as such investment is not related in any way to the business activity of the assessee company - Held that:- The assessee has acquired these shares to gain controlling interest in a competitor company. It is of the considered opinion that the disallowance made is bad in law. Accordingly delete the disallowance made by the Assessing Officer as affirmed by the ld. CIT(A) and direct the Assessing Officer to allow the claim of the assessee u/s 36(1)(iii) of the Act. See Caldern Pharmaceuticals Ltd. vs. CIT [2003 (9) TMI 53 - CALCUTTA High Court]. - Decided in favour of assessee.
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