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2020 (9) TMI 24 - AT - Income TaxDisallowance of interest expenditure u/s 36 - interest was paid by the assessee on Short Term Borrowings used for paying share application money - nature of business activities undertaken by the assessee as a non-banking finance company - HELD THAT:- Share application money was paid by the assessee company in the ordinary course of its business of making investment in shares and, therefore, interest expenditure incurred on the borrowed fund utilised for making the payment of share application money is deductible u/s 36(1)(iii) as claimed by the assessee. We accordingly delete the disallowance made by the AO and confirmed the Ld. CIT(A) out of interest expenditure and allow this appeal of the assessee.
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