https://www.taxtmi.com/caselaws?id=364168 The appeal against the disallowance of interest under section 36(1)(iii) of the Income Tax Act, based on the matching principle, was allowed. The appellant's cash basis system did not necessitate applying the matching principle, as interest was recorded at the point of receipt and payment. Previous tribunal decisions and High Court rulings supported the business nature of investments, leading to the unjustified disallowance being overturned. The judgment emphasizes the importance of the accounting system and commercial expediency in financial transactions involving interest. en-us Thu, 19 Jul 2018 00:00:00 +0530 Tue, 24 Jul 2018 08:51:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=364168 The appeal against the disallowance of interest under section 36(1)(iii) of the Income Tax Act, based on the matching principle, was allowed. The appellant's cash basis system did not necessitate applying the matching principle, as interest was recorded at the point of receipt and payment. Previous tribunal decisions and High Court rulings supported the business nature of investments, leading to the unjustified disallowance being overturned. The judgment emphasizes the importance of the accounting system and commercial expediency in financial transactions involving interest. Case-Laws Income Tax Thu, 19 Jul 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=364168