https://www.taxtmi.com/caselaws?id=219883 The High Court dismissed the appeal by a financial enterprise challenging the disallowance of interest paid in excess of the legal limit under the Money Lenders Act. The court held that the deduction claimed for the excess interest was prohibited by the Explanation to Section 37 of the Income Tax Act, 1961. It emphasized that if an expenditure is incurred for a purpose constituting an offense or prohibited by law, it cannot be claimed as a deduction. Therefore, the court concluded that the excess interest paid was prohibited by law, and no deduction could be allowed under Section 37, ultimately ruling against the appellant. en-us Fri, 07 Sep 2012 00:00:00 +0530 Mon, 31 Dec 2012 13:55:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=219883 The High Court dismissed the appeal by a financial enterprise challenging the disallowance of interest paid in excess of the legal limit under the Money Lenders Act. The court held that the deduction claimed for the excess interest was prohibited by the Explanation to Section 37 of the Income Tax Act, 1961. It emphasized that if an expenditure is incurred for a purpose constituting an offense or prohibited by law, it cannot be claimed as a deduction. Therefore, the court concluded that the excess interest paid was prohibited by law, and no deduction could be allowed under Section 37, ultimately ruling against the appellant. Case-Laws Income Tax Fri, 07 Sep 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=219883