https://www.taxtmi.com/caselaws?id=69008 The Tribunal upheld the CIT (Appeals) decision allowing the deduction of additional interest paid by a banking company to Recurring Deposit holders as a business expense under section 36(1)(iii). The payment was deemed a genuine incentive related to financial market conditions, not an appropriation of profits. The Tribunal clarified that the payment was for commercial expediency, not a dividend to shareholders, and confirmed it as interest on borrowed capital. The appeals by the revenue were dismissed, affirming the allowance of the deduction for additional interest paid to Recurring Deposit holders. en-us Wed, 16 Nov 1988 00:00:00 +0530 Mon, 04 Apr 2011 15:01:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69008 The Tribunal upheld the CIT (Appeals) decision allowing the deduction of additional interest paid by a banking company to Recurring Deposit holders as a business expense under section 36(1)(iii). The payment was deemed a genuine incentive related to financial market conditions, not an appropriation of profits. The Tribunal clarified that the payment was for commercial expediency, not a dividend to shareholders, and confirmed it as interest on borrowed capital. The appeals by the revenue were dismissed, affirming the allowance of the deduction for additional interest paid to Recurring Deposit holders. Case-Laws Income Tax Wed, 16 Nov 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69008