The AO disallowed the payment of interest for non deduction of tax at source in respect of payment of interest. Tribunal held that interest payment on foreign currency loan is exempt u/s 10(15) (f) of the Act. On appeal by the revenue, dismissing the appeal the Court held that even if loan taken for working capital loan earlier the exemption given of the ministry of finance hence the order of tribunal is affirmed. (TA No. 2025 of 2008 dt 3-12-2019)
CIT v. Seven Seas Distillery P. Ltd ( 2020) CTCJ-January-P. 86 / 185 DTR 105/ 312 CTR 272 (Mad.)(HC)
S. 40(a)(i) : Amounts not deductible-Interest-Party residing outside India–Exemption from Ministry of Finance–Not liable to deduct tax at source. [S. 10(15)(f), 195]