Interest on Borrowed Capital ::

Last updated: 07 September 2007

Court :
Tribunal

Brief :
Held that interest paid by the investment company on funds borrowed for purchase of shares, irrespective of the fact whether such shares were to be held as stock in trade or investment or for acquiring controlling interest in other companies, was deductible u/s 36(1)(iii).

Citation :
Srishti Securities (P). Ltd. Vs. Jt. CIT

Interest on Borrowed Capital Srishti Securities (P). Ltd. Vs. Jt. CIT 4/1/2005 IT Appeal No. 3761 (MUM.) of 2000 Case Fact: Whether interest paid by an investment co.on funds borrowed for purchase of shares was deductible u/s 36(1)(iii). Decision: Held that interest paid by the investment company on funds borrowed for purchase of shares, irrespective of the fact whether such shares were to be held as stock in trade or investment or for acquiring controlling interest in other companies, was deductible u/s 36(1)(iii).