https://www.taxtmi.com/caselaws?id=252738 Whether interest on borrowed funds invested in shares and debentures is deductible as business expenditure under s. 36(1)(iii) of the Income-tax Act was the dominant issue. The HC held that the only requirement for deduction is that the capital was borrowed and utilised for business purposes in the relevant year; it is immaterial whether the borrowing was used to acquire a capital or revenue asset, and interest remains deductible even where an investment company borrows to acquire shares held as investments, stock-in-trade, or for obtaining controlling interest. Consequently, the Tribunal's allowance of the interest deduction was upheld and the appeal was decided against the revenue. en-us Wed, 17 Sep 2014 00:00:00 +0530 Wed, 17 Dec 2025 16:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=252738 Whether interest on borrowed funds invested in shares and debentures is deductible as business expenditure under s. 36(1)(iii) of the Income-tax Act was the dominant issue. The HC held that the only requirement for deduction is that the capital was borrowed and utilised for business purposes in the relevant year; it is immaterial whether the borrowing was used to acquire a capital or revenue asset, and interest remains deductible even where an investment company borrows to acquire shares held as investments, stock-in-trade, or for obtaining controlling interest. Consequently, the Tribunal's allowance of the interest deduction was upheld and the appeal was decided against the revenue. Case-Laws Income Tax Wed, 17 Sep 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=252738