TMI Blog2016 (5) TMI 476X X X X Extracts X X X X X X X X Extracts X X X X ..... oresaid finding it is axiomatic that the interest paid or payable for purchase of a business asset is allowable under section 36 - Decided against revenue - ITA 105 of 2007 - - - Dated:- 4-5-2016 - Girish Chandra Gupta And Asha Arora, JJ. For the Appellant : Mr. J. P. Khaitan, Sr. Advocate Mr. S. K. Bhowmik, Advocate Mr. A. K. Dey, Advocate For the Respondent : Md. Nizamuddin, Advoca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on credit. The question is, whether interest payable on the aforesaid purchase is an allowable expenditure under section 37 of the Income Tax Act. The assessing officer was of the opinion that the debentures were held by the assessee as an investment and therefore, expenditure incurred in paying interest should be added to the cost of acquisition. The assessing officer in drawing the conclus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... treated as such in the computation of income. In an appeal preferred by the assessee, the CIT (Appeal) held that There is no dispute on the fact that the debentures under consideration are business asset for the appellant. That being so, interest paid for purchse of business asset has to be allowed as business expenditure. In an appeal by the revenue, the learned Tribunal held as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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