Interest on Borrowed Capital ::

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).

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Judgement posted by

CA.Saibaburao Nanduri

Chartered Accountant

I am a commerce graduarte of Andhra University. Studied at HINDU COLLEGE, Guntur. Became FCA and started Practice under the name and style of M/s SAIBABU RAO CO I became Chairman of CA Institute, Guntur Branch, during the year 2008-09 My post qualifications are: Information Systems Audit DISA (ICAI) ... Read more

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