Foreign Branch Interest Not Eligible for Weighted Deduction

The High Court of Madras ruled that interest paid by the assessee's foreign branch did not qualify for weighted deduction under section 35B(1)(b)(iv), overturning the Tribunal's decision in favor of the Revenue.

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The High Court of Madras held that the interest paid by the assessee's foreign branch on deposits and borrowings did not qualify for weighted deduction under section 35B(1)(b)(iv). The court's decision was based on a previous case involving the same assessee. The Tribunal was found to be in error for allowing the weighted deduction, and the ruling favored the Revenue over the assessee.

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