Dismissing the appeal of the Revenue the Court held circular trading entered into by the assessee solely with the idea of evading tax by acquiring the shares through finances arranged mainly from sister companies of the group along with two other companies to enable the group to acquire and takeover the business of Ahmadabad Electricity Co Ltd. The interest was rightly held to be deductible. No question of law arose from the order.(AY. 1997-98)
CIT v. Ashini Lease Finance Pvt. Ltd.(2025) 482 ITR 81 (Guj)(HC)
S. 36(1)(iii) :Interest on borrowed capital-Used for purpose of business-Acquiring interest-Allowable as deduction. [S 260A]
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