https://www.taxtmi.com/caselaws?id=262099 The High Court ruled against the assessee, disallowing the deduction claimed on interest on interest under Section 36(1)(iii) of the Income Tax Act. The Court held that only interest genuinely regarded as such could be claimed as a deduction, while interest on interest, considered a penalty, was not deductible. The Court found the reasoning of the lower authorities insufficient and emphasized the failure of the assessee to adequately explain the deduction, ultimately directing the Department to proceed based on the judgment. en-us Tue, 14 Jul 2015 00:00:00 +0530 Sat, 01 Aug 2015 08:39:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=262099 The High Court ruled against the assessee, disallowing the deduction claimed on interest on interest under Section 36(1)(iii) of the Income Tax Act. The Court held that only interest genuinely regarded as such could be claimed as a deduction, while interest on interest, considered a penalty, was not deductible. The Court found the reasoning of the lower authorities insufficient and emphasized the failure of the assessee to adequately explain the deduction, ultimately directing the Department to proceed based on the judgment. Case-Laws Income Tax Tue, 14 Jul 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=262099