https://www.taxtmi.com/caselaws?id=208597 The HC allowed the revenue's appeal, reversing the Tribunal and restoring the Assessing Officer's disallowance of interest claimed on borrowed funds used to acquire shares. The court held deduction under s.36(1)(iii) is available only where shares are stock-in-trade (i.e., the assessee is trading in shares); where shares are held as investments yielding only dividend (meagre in this case), s.14A applies and interest is disallowable. The Tribunal erred in allowing excess claim (over Rs.2 lakhs) and in permitting deduction for interest on fixed-deposit-funded borrowings used to buy the shares; those claims were disallowed. en-us Mon, 14 Jun 2010 00:00:00 +0530 Thu, 28 Aug 2025 18:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=208597 The HC allowed the revenue's appeal, reversing the Tribunal and restoring the Assessing Officer's disallowance of interest claimed on borrowed funds used to acquire shares. The court held deduction under s.36(1)(iii) is available only where shares are stock-in-trade (i.e., the assessee is trading in shares); where shares are held as investments yielding only dividend (meagre in this case), s.14A applies and interest is disallowable. The Tribunal erred in allowing excess claim (over Rs.2 lakhs) and in permitting deduction for interest on fixed-deposit-funded borrowings used to buy the shares; those claims were disallowed. Case-Laws Income Tax Mon, 14 Jun 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=208597