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2018 (10) TMI 505 - HC - Income TaxDisallowance u/s 36(1)(iii) - interest incurred for the purpose of making investments in subsidiary companies - Held that:- The Tribunal correctly affirmed findings of the Commissioner of Income Tax (Appeals) deleting addition made by the Assessing Officer as being contrary to law and in particular Section 36(1)(iii) of the Act. The Tribunal observed that investment in subsidiaries/ joint venture companies was one of the main objects of the respondent-assessee and hence expenditure in the nature of interest incurred for the purpose of making investments cannot be disallowed under Section 36(1)(iii) of the Act. Apart from the incongruities in the reasoning and calculations made by the Assessing Officer referred to in the order of the Commissioner of Income Tax (Appeals), which have been accepted by the Tribunal, the issue raised is covered against the Revenue by the decision of the Supreme Court in S.A. Builders Limited versus Commissioner of Income Tax and Another, (2006 (12) TMI 82 - SUPREME COURT) - decided against revenue
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