2018 (11) TMI 1256

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....NT : ADVS. SRI.E.K.NANDAKUMAR (SR.), SRI.K.JOHN MATHAI, SRI.P.BENNY THOMAS AND SRI.P.GOPINATH JUDGMENT Vinod Chandran, J The only question arising in the above appeals covered by the decision of the Hon'ble Supreme Court is whether the assessee was entitled to claim set off of interest income from fixed deposits; from the interest paid on borrowed funds on the sole ground that the bor....

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....wing manner. "In the present case what has actually happened is the lower incidence of interest on borrowed funds by way of deploying the same borrowed funds in an income bearing manner for short term periods. Therefore, we cannot say that there was any set off of interest expenditure against interest income." 3. We do not think that the reasoning of the Tribunal is correct. We need on....

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....e question of adjustment of interest payable by the Company against the interest earned by it will depend upon the provisions of the Act. The expenditure would have been deductible as incurred for the purpose of business if the assessee's business had commenced. But that is not the case here. The assessee may be entitled to capitalise the interest payable by it. But what the assessee cannot claim ....