Supreme Court allows deduction for interest paid on capital assets not put to use.

The Supreme Court ruled in favor of the assessee, allowing interest paid for acquiring capital assets not put to use in the financial year as a deduction under section 36(1)(iii) of the Income-tax Act, 1961. The appeals were allowed with no costs. (2012 (9) TMI 519 - SC)

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The Supreme Court granted leave in a case where the question was whether interest paid for acquiring capital assets not put to use in the financial year can be allowed as a deduction under section 36(1)(iii) of the Income-tax Act, 1961. The court ruled in favor of the assessee based on a previous case law and allowed the appeals with no costs. (Case citation: 2012 (9) TMI 519 - SC)

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