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2012 (6) TMI 265 - KARNATAKA HIGH COURTInterest paid in respect of capital borrowed – borrowed capital is utilized for purchasing shares of the two companies claiming the amount as a deductible business expenditure – disallowance by Revenue as not a permitted deductions within the scope of Section 36(1)(iii) - Held that:- The tribunal which has reversed the decision of the assessing officer and the affirming order of the appellate commissioner has not recorded a positive finding as to what exactly was the business activity of the assessee and as to how the activity constituted a business activity and the borrowing also constituted an investment, which is in the nature of a capital investment for the purpose of business of the assessee - in the absence of a commensurate finding on the part of the tribunal remand the matter back for reexamination and to record a proper finding and then apply the legal principles.
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