https://www.taxtmi.com/caselaws?id=393878 HC held that interest on borrowed capital used to purchase shares of a company (IHFC Ltd) to obtain effective control and expand the assessee's real estate business is deductible under Section 36(1)(iii), not Section 57(iii). The dominant purpose of borrowing was found to be business expansion, not earning dividend income; hence Section 57(iii) was inapplicable. The finding of CIT(A) allowing deduction under Section 57(iii) and ITAT's conclusion that the share purchase was not for business purposes were both set aside. The substantial question of law was answered in favour of the assessee and against the Revenue, allowing the interest deduction under Section 36(1)(iii). en-us Tue, 28 Jan 2020 00:00:00 +0530 Tue, 02 Dec 2025 14:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=393878 HC held that interest on borrowed capital used to purchase shares of a company (IHFC Ltd) to obtain effective control and expand the assessee's real estate business is deductible under Section 36(1)(iii), not Section 57(iii). The dominant purpose of borrowing was found to be business expansion, not earning dividend income; hence Section 57(iii) was inapplicable. The finding of CIT(A) allowing deduction under Section 57(iii) and ITAT's conclusion that the share purchase was not for business purposes were both set aside. The substantial question of law was answered in favour of the assessee and against the Revenue, allowing the interest deduction under Section 36(1)(iii). Case-Laws Income Tax Tue, 28 Jan 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=393878