2011 (9) TMI 730

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.... JUDGMENT C.N. Ramachandran Nair, J. - The question raised in the Revenue's appeal is whether the Tribunal was justified in cancelling disallowance of expenditure incurred by the assessee by way of interest paid on funds borrowed for making investments where from tax free income is received. 2. On going through the Tribunal's order impugned in the appeal what we notice is that the Tribunal has....

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....d and decided by us in the above decision was in tax free bonds which is the investment made by the respondent/assessee herein also. Normally tax free bonds are purchased by banks only to meet part of SLR requirements. Even though it is not so stated in the above decided case, investments made by those banks also would have been to meet the SLR requirements. In any case, we do not think that the o....