Taxability on Interest Account under provisions of Sec. 36(1)(iii) of the Income Tax Act

Author
View profile
Last updated: 02 July 2021
Quick Summary
This appeal concerns the taxability of interest on funds provided by the assessee to an associated concern, M/s G. Drugs and Pharmaceuticals Ltd. The Assessing Officer disallowed interest expenses under Section 36(1)(iii) of the Income Tax Act, arguing the funds were diverted for non-business purposes. The assessee contended that the associated concern had merged with the company, making the disallowance irrelevant, but failed to provide the necessary High Court amalgamation order. The CIT(A) upheld the disallowance and also ruled that certain interest amounts should be capitalised.

Court :
ITAT Chandigarh

Brief :
This is an appeal by the assessee against the order dt. 13/08/2019 of the Ld. CIT(A)-3 Ludhiana.

Citation :
ITA NO. 1419/Chd/2019

Daily Limit Reached

You have reached your daily limit of 2 Free Judgements

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?
  • No Ads
  • WhatsApp Community
  • Daily E-Newsletter
  • Unlimited Judgements Access
  • Profile Visitors
  • Link Social Profiles
  • Featured Job Posts
  • Pro Badge
  • Expert GST Guidance
  • Unlimited Forum Replies
  • Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)

2 Years PLAN
3499
(Excl. of GST ₹629)

BEST VALUE
3 Years PLAN
4999
(Excl. of GST ₹899)

View all CCI PRO benefits

Already a PRO member? Login here for an ad-free experience. 07941056694

 
downloaded 324 times


Guest

Judgement posted by

Guest

View Judgements
Comments


Recent Judgments :

  1. No Fresh Pre-Deposit for GSTAT Appeal When Earlier Deposit Already Covers 20% of Disputed Tax
  2. CESTAT: Service Tax Demand Based Solely on ITR Data Unsustainable; 40% Valuation Applicable to Original Works Contract
  3. CESTAT: Renting Vehicles on Per-Trip Basis Not Taxable as Supply of Tangible Goods
  4. CESTAT Denies Refund of Ocean Freight Service Tax Claim Filed Beyond Limitation
  5. CESTAT Quashes Service Tax Demand Based Merely on Form 26AS; Renting of Residential Hostel Held Non-Taxable
  6. CESTAT: Rajasthan Sales Tax Subsidy under RIPS 2010 Not includible in Excise Assessable Value
  7. CESTAT: Late Payment Charges in the Nature of Interest Not Taxable as Declared Service
  8. CESTAT: Educational Services Exempt Under Section 66D; Extended Period Cannot Be Invoked Without Wilful Suppression
  9. CESTAT: No Service Tax on Royalty under RCM if Mining Lease Was Executed Before 1 April 2016
  10. No pre-deposit required for filing appeal before the GSTAT against penalty-only orders where proceedings commenced prior to October 01 2025

View More Judgments »


Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Pro Member shashishashiPro Member B L BhojwaniB L BhojwaniPro Member DHANASHRI KARMARKAR DHANASHRI KARMARKAR Pro Member CA. K. BRAHMANAYAGAMCA. K. BRAHMANAYAGAMPro Member CA Varun GuptaCA Varun Gupta
Subscribe to Pro
Join an elite circle of professionals

Browse by Category




Latest Job Openings

View all
Company
23 October 2026
Sr. Accountant

SANKARAN & KRISHNAN

New Delhi

B.Com

View Details
Company
12 November 2026
Auditor

Oz Taxation

Vijayawada

Graduate (Any)

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 07 November 2026
Article Assisstant

DPV & Associates

Chennai

CA Inter

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
ARTICLESHIP 25 October 2026
Article Intern (CA Articleship)

Arpan Bohra & Co

Hyderabad

CA Inter

View Details
Company
Featured ARTICLESHIP 28 October 2026
CA- Inter and Articles

N N V Satish & Co.,

Hyderabad

CA Inter

View Details
Company
Featured 29 October 2026
Accounts Executive

Synergy Keystone

Chennai

B.Com

View Details