2025 (5) TMI 1597 - SCH - Income Tax

Disallowance of the interest expenses claimed u/s 36(1)(iii) - interest bearing funds were given to subsidiary company as interest free deposits in guise of share application money - delay filling SLP - HC held 2024 (2) TMI 893 - BOMBAY HIGH COURT both the CIT(A) as well as the ITAT had come to a factual finding and the law is also clear that if an assessee for commercial expediency and in the normal course of its business activities takes loan to invest in shares of its subsidiary the interest paid on these advances utilized is allowable expenditure u/s 36(1)(iii). HELD THAT - There is a gross delay of 295 days in filing the Special Leave Petition which has not been satisfactorily explained by the petitioner - Revenue. Special Leave Petition is accordingly dismissed on the ground of delay. The question of law if any is kept open.

Summary

The Supreme Court, through Hon'ble Justices J. B. Pardiwala and R. Mahadevan, dismissed the Special Leave Petition filed by the Revenue due to a "gross delay of 295 days" in filing, which was "not satisfactorily explained." The Court held that the petition is dismissed "on the ground of delay," while explicitly leaving "the question of law, if any, ... open." All pending applications were also disposed of.