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DCIT vs. Core Health Care (Supreme Court)

COURT:
CORAM:
SECTION(S):
GENRE:
CATCH WORDS:
COUNSEL:
DATE: (Date of pronouncement)
DATE: February 12, 2008 (Date of publication)
AY:
FILE:
CITATION:

(i) Interest paid in respect of borrowings on capital assets not put to use in the concerned financial year are deductible under Section 36(1)(iii) of the Act;

(ii) Interest on all moneys borrowed for the purposes of business are deductible irrespective of whether the moneys are used for a revenue purpose or a capital purpose;

(iii) Explanation 8 to s. 43(1) has no application to s. 36(1)(iii);

(iv) The proviso to s. 36(1)(iii) operates prospectively;

(v) Challapalli Sugars 98 ITR 167 (SC) applies to a case where the business had not yet commenced.

Note: The judgement of the Full Bench in CIT vs. Vardhaman Polytex (P & H High Court) is impliedly overruled.

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