https://www.taxtmi.com/caselaws?id=291165 The Tribunal upheld the decision of the High Court, dismissing the Revenue's appeal regarding the disallowance of expenditure under section 36(1)(iii) of the Income Tax Act for the assessment year 2012-13. The Court emphasized the necessity of commercial expediency in determining the allowability of interest paid on borrowed capital for business purposes, stating that such payments must benefit the business directly. The Tribunal found that the interest paid by the assessee, an investment company, was commercially expedient, and the matching principle did not apply in this case. Consequently, the Revenue's appeal was dismissed. en-us Thu, 20 Jun 2019 00:00:00 +0530 Fri, 30 Oct 2020 10:14:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=291165 The Tribunal upheld the decision of the High Court, dismissing the Revenue's appeal regarding the disallowance of expenditure under section 36(1)(iii) of the Income Tax Act for the assessment year 2012-13. The Court emphasized the necessity of commercial expediency in determining the allowability of interest paid on borrowed capital for business purposes, stating that such payments must benefit the business directly. The Tribunal found that the interest paid by the assessee, an investment company, was commercially expedient, and the matching principle did not apply in this case. Consequently, the Revenue's appeal was dismissed. Case-Laws Income Tax Thu, 20 Jun 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=291165