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).
CA.Saibaburao Nanduri
Published in Income Tax
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