Dismissing the appeal of the revenue the Court held that the Tribunal was right in deleting the addition made on account of interest expenditure at the rate of 15 per cent. Looking to the commercial expediency, it could not be said that the Tribunal had committed any error in deleting the addition.( AY.2008-09)
CIT v. Shree Benzophen Industries Ltd. (2018) 405 ITR 185 (Guj) (HC) Editorial: SLP of revenue is dismissed ; CIT v. Shree Benzophen Industries Ltd. (2018) 401 ITR 170 (St)
S. 36(1)(iii) :Interest on borrowed capital – 15% rate of interest was paid on borrowed capital – Allowable as deduction on principle of commercial expediency .[ S.37(1) ]