https://www.taxtmi.com/caselaws?id=37711 The High Court of Orissa ruled in favor of the assessee, allowing the deduction of interest paid on loans for purchasing Government Loan Bonds under section 36(1)(iii) of the Income Tax Act. The court held that the bond purchase was directly linked to the assessee's business activity of supplying products to the government, making the interest payment admissible. The Tribunal's decision was upheld, emphasizing the commercial nature of the interest payment and the factual context of the case. The court awarded costs for the references and affirmed the Tribunal's decision. en-us Mon, 22 Aug 1977 00:00:00 +0530 Wed, 31 Mar 2010 15:50:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37711 The High Court of Orissa ruled in favor of the assessee, allowing the deduction of interest paid on loans for purchasing Government Loan Bonds under section 36(1)(iii) of the Income Tax Act. The court held that the bond purchase was directly linked to the assessee's business activity of supplying products to the government, making the interest payment admissible. The Tribunal's decision was upheld, emphasizing the commercial nature of the interest payment and the factual context of the case. The court awarded costs for the references and affirmed the Tribunal's decision. Case-Laws Income Tax Mon, 22 Aug 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37711