Allowability of Interest on Loan taken in name of Director
This query is : Resolved
kasturiphani
(Querist)
04 January 2010
Depreciation on car Registered in the name of its partners or directors is allowable as per Supreme Court in the case of Mysore Minerals Ltd. V. CIT [1999] 239 ITR 775/106 Taxman 166
How about allowability of interest on borrowed funds(For acquiring Car) taken in the name of Director in the hands of Company?
How about allowability of interest on borrowed funds(For acquiring Car) taken in the name of Director in the hands of Company?
Aditya Maheshwari
(Expert)
04 January 2010
You can use the above case law and state that the liability arises due to car purchase and the interest on loan will be allowable on the same grounds
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