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2021 (4) TMI 477 - ITAT MUMBAIDisallowance of broken period interest on purchase of securities - expenditure deductible as business expenditure - HELD THAT:- As decided in own case AO has not disputed the aforesaid factual position, however, he has held that the Income Tax Act, 1961 will get precedence over the Banking Regulation Act, 1949. Thus, from the aforesaid facts it is clear, though, the assessee has held the securities as stock-in-trade, however, complying to the provisions of Banking Regulation Act, 1949, it has shown them as investment. But, for that reason itself, the nature and character of securities held as stock-in-trade will not change. Moreover, the Department has not disputed the fact that the income derived by the assessee from sale of securities has been offered as business income and the department has also accepted it. Applying the same logic, the expenditure incurred by way of payment of broken period interest while purchasing such securities must be treated as business expenditure. The decisions relied upon by the learned Authorised Representative clearly support this view. In aforesaid view of the matter, we uphold the decision of the learned Commissioner (Appeals) on this issue by dismissing the ground raised by the Revenue.
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